Hedge Mode

The Hedge Mode is a novel and exclusive functionality of the Kana Perps platform. It is designed to help traders maintain flexibility while minimising their exposure to liquidation risk. It enables users to open long and short positions on the same asset simultaneously, whether for speculative trading or risk management. This allows traders to hedge existing positions while maintaining full control over their exposure.

By opening a hedged position against existing open positions, traders can avoid getting liquidated by neutralising exposure. This feature can also help prevent traders from incurring losses during sudden news-driven short-term market volatility by opening dual positions and exiting one side to lock in profits. Traders can also use the hedged mode to capture funding rate arbitrage for passive income

Here is a breakdown of Hedge Mode works in various scenarios -

• Hedging a Short-Term 2-3% Price Decline

• Dual Positioning for Profit-Taking (Speculative Trading)

Each section will include PnL calculations, funding effects, and liquidation risks.