Spot hedge
Short a coin on Hyperliquid against the same coin you hold, so its price stops moving your balance while the short collects funding. Risks, alerts, settings.
The spot hedge protects coins you already hold. You keep your spot (on Hyperliquid or anywhere else), and the bot holds a short of the same number of coins on Hyperliquid's perp. When the price rises your spot gains about what the short loses, and when it falls the short gains about what your spot loses. Together they keep roughly their dollar value.
On top of that the short collects funding while most traders are long, which is usually the case: Hyperliquid pays it every hour.
How it works
It opens the short once
With orders that cross the order book at most your max slippage (0.5% by default) from the price, isolated at 1x or 2x. If the book doesn't have the whole size within that limit, it tries again every few seconds and pauses after five tries with what it holds.
Then it only holds it
It never adds to the short, never trades your spot and never moves money. A short closed by the guard or by Hyperliquid is not reopened.
A guard stop sits before the liquidation price
A reduce-only stop 85% of the way from your entry to the liquidation price (you can set 50–90% or turn it off). If the price gets there, the bot closes the short, keeps what is left of the margin and tells you at once. If you add margin on Hyperliquid, the liquidation price moves up and the guard follows it.
It watches the margin and the funding
You get a notice when the liquidation price comes within 15% of the price (your setting), with how much USDC to add to the position to move it back out, and an urgent one at half of that. Another notice comes when the short starts paying funding over a day, and if your spot on Hyperliquid drops below the short.
What the research found
Prow tested the hedge on 25 Hyperliquid coins from July 2024 to October 2026 with real hourly funding, Hyperliquid's taker fee, Prow's fee and slippage on both the open and the close.
| Median of the 25 coins | |
|---|---|
| Funding the short collected, a year | about 9.5% |
| 30-day hold, after the round trip | +0.45% (the worst 5% of starts: −0.6%) |
| 90-day hold, after the round trip | +1.7% |
| Days the short paid funding | about 1 in 7 |
| A 30-day rise reached liquidation, 1x | about 4% of starts |
| A 30-day rise reached liquidation, 2x | about 15% of starts |
Coins differ a lot. BTC collected about 10% a year and its 30-day hold was positive in 9 of 10 starts. On ENA, TRX and ADA the short paid funding for long stretches and the hold lost money after fees. A hedge held for a week or less mostly doesn't pay for its own fees.
The builder's History card shows the same numbers for the coin you pick, over its last 180 days, before you start. They describe the past.
Settings
The panel asks for:
| Setting | Default | What it does |
|---|---|---|
| Where your spot is | On Hyperliquid | On Hyperliquid: Prow reads your spot balance of the coin (UBTC for BTC, HYPE for HYPE …) and warns you if it drops below the short. Elsewhere: you enter the size; Prow can't see that spot, so keep the two in step yourself |
| Coins to hedge | Your whole spot balance | The short's size, in coins. 25%, 50% and All fill in a share of what you hold |
| Leverage | 1x | Isolated. 1x puts up the short's whole value as margin (liquidation after a rise of about 95%); 2x half of it (about 45%) |
Under them, the panel shows the Margin, where the guard closes the short (Guard closes it at), the Liquidation price and the Fees to open and close. Manual adjustment sums the rest up in one line, for example "Guard at 85%, margin alert 15%, slippage 50 bp":
| Setting | Default | What it does |
|---|---|---|
| Guard stop | On, Guard at 85% to liquidation | Closes the short before Hyperliquid would liquidate it |
| Margin alert | 15% | Notice when the liquidation price is this close; urgent at half of it |
| Say how much margin to add | On | The alert includes the USDC to add on Hyperliquid |
| Max slippage | 50 bp | How far the opening and closing orders may cross the order book |
The size, leverage and guard are part of the limits you sign. To change them, stop the hedge and start a new one. The alerts can be changed on the bot's page (Alerts).
Start a hedge
Open the builder
Press Start a bot on the Bots page and pick Spot hedge: its pane lists the coins in your Hyperliquid spot balance a bot can protect, and Coins in another wallet or exchange. Tap one, or press Set up myself. The coin is picked in the builder's header, as on Trade (Hyperliquid markets only).
Check the margin, the guard and the coin's history
The panel shows the margin used, where the guard and the liquidation price are and the fees to open and close. The History card shows the coin's funding over the last 180 days.
Press Continue, turn on the risk acknowledgement and press Sign and start
The review lists the short, what it protects, the margin used and the guard and liquidation prices, and the limits you sign.
Enable bots on Hyperliquid (first bot on the account) and sign the limits
One signature for the Prow Bots key if the account has none, one for the Prow fee if it's missing, one for the limits. The limits last 30 days: renew them on the bot's page (Renew limits (1 signature)). If they lapse, the short and its guard stay on Hyperliquid; nothing new is opened.
Stop a hedge
Close the short at market (default) buys it back with reduce-only orders; your spot is then unhedged. Keep the short with its guard leaves both on Hyperliquid as normal orders that Prow no longer watches. Keep the short without a stop leaves only the short. Pausing keeps the short and its guard.
Common questions
Is this an arbitrage? It is the spot–perp trade with the spot leg being yours. The arbitrage bot buys the spot itself and closes both legs when funding turns; the hedge never touches your spot and stays on until you stop it.
What does it cost? Hyperliquid's taker fee and slippage, plus Prow's fee (0% until Dec 31, 2026, then 0.025% per trade), once to open and once to close: about 0.16% of the short on BTC, up to 0.3% on smaller coins. See Fees.
Spot on BTC, ETH or SOL? On Hyperliquid spot these are bridged tokens (UBTC, UETH, USOL, through Unit). If the bridge failed they could lose their peg while the short follows the real price. HYPE is native.
Can the bot add margin for me? No. The Prow Bots key can trade but never moves money. The alert tells you how much to add on Hyperliquid (Positions → the coin → Margin).
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