> For the complete documentation index, see [llms.txt](https://docs.valantis.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.valantis.xyz/prime/discounts/strategies/delta-neutral.md).

# Stay Delta-Neutral

Hold the stHYPE required for your tier and short HYPE perps against it.

This is designed for traders who value the fee discount but do not want a long HYPE position, or who already hedge a native staking position and want a more flexible spot leg.

<figure><img src="https://986147118-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1hNJeG4CApeBcE2NlR61%2Fuploads%2Fgit-blob-f774121e990a8a7a38b8f743105db4f9770e02d7%2Fimage%20(9).png?alt=media" alt=""><figcaption></figcaption></figure>

Any hedging instruments are welcome. wstHYPE gives more margin and options is crafting hedging strategies while keeping your staking discount.

## Mechanics

1. Hold tier-qualifying stHYPE or wstHYPE.
2. Short approximately 1 HYPE perp for each HYPE of net spot exposure.
3. Rebalance the short as staking yield, deposits, withdrawals, or strategy allocations change the exposure.
4. Keep sufficient USDC margin on the perp side.

The position keeps the Prime tier and stHYPE yield. The short receives funding when HYPE funding is positive and pays funding when it is negative.

At the July 15, 2026 snapshot, HYPE funding averaged **11.2% annualized over 30 days** and was positive during **91.6% of hours** in the trailing year. Those figures are historical, not a forecast.

## Why stHYPE helps

* You can run your hedge with margin borrowed against the staked inventory that gives your discount. Using [HyperEVM Margin](/prime/discounts/strategies/usdc-margin.md) or [stHYPE Portfolio Margin](/prime/discounts/strategies/portfolio-margin.md).
* The spot leg earns higher-than-native staking yield.
* The qualifying balance can remain in supported lending or options integrations.
* The Prime discount lowers the trading cost of hedge adjustments.
* DEX liquidity and the redemption buffer usually let you reduce the spot leg without waiting for native unstaking.

## When it fits

* You already hedge a staked HYPE position.
* Your HYPE sensitivity changes over time and you want to adjust the spot leg without a native unstaking queue.
* Your fee savings are large enough to justify perp margin and rebalancing.

## Risks

* Funding can compress or turn negative.
* A fast HYPE rally can pressure the short's USDC margin even while the spot leg gains.
* The hedge is approximate and must account for wstHYPE exchange-rate growth and any borrowed HYPE.
* Contract, exchange, and operational risks remain.

For a levered version that adds the staking spread, see the [Looped Basis Trade](/prime/discounts/strategies/looped-basis.md).