Delta neutral strategy account mode

What is the Delta neutral strategy account mode?

Delta neutral strategy account mode is a strategy setting available to VIP users. It’s designed for users executing low-risk hedging strategies, such as funding rate arbitrage and index arbitrage.

This isn’t a new product. Instead, it groups existing features under a dedicated strategy mode to provide more refined risk management and borrowing limit allocation.

Core objective:

• Optimize borrowing limits: Allocate higher limits to low-risk strategies.

• Reduce platform risk: Lower the risk of ADL (auto-deleveraging) and platform lending exposure.

• Enhance user experience: Provide higher borrowing limits and improved ADL ranking protection for arbitrage strategies.

What's the product key features and advantages?

1. Independent USDT borrowing limit

• Under the USDT currency, the Delta neutral strategy sub-account has its own independent borrowing limit from the parent account, which is calculated separately from the general strategy account.

  • For example, if a VIP5 user has a 50,000,000 USDT limit in general strategy mode, switching part of the account to Delta neutral strategy mode may provide an additional 15,000,000 USDT limit for that portion.

2. ADL ranking optimization

• Hedged positions (such as spot, perpetual, and expiry futures of the same cryptocurrency) are processed later in the ADL ranking, which lowers the probability of being subject to auto-deleveraging.

• Please note that in extreme market conditions, even lower-ranked positions may still be subject to ADL.

• Unhedged positions follow standard ADL rules.

3. Delta risk control mechanism

• Introduce the Delta equity ratio (Delta / account equity) as a key risk control indicator.

  • ≤0.2: Normal status

  • >0.2: Transfers out of the trading account are restricted

  • If Delta > 500,000 USD and the equity ratio ≥ 0.3:

    • All limit, market, and take-profit/stop-loss orders will be canceled

    • Batch orders via API are restricted when the Delta equity ratio ≥ 0.3 (optimization planned)

Who can use Delta neutral strategy mode?

Delta neutral strategy mode is available to VIP users only, including trial VIP users. It’s primarily designed for institutional or professional users running low-risk strategies, such as funding rate arbitrage or index arbitrage.

What do I need to enable it?

To use Delta neutral strategy mode, your account must be in Multi-currency mode or Portfolio margin mode.

What is not supported?

You won’t be able to enable Delta neutral strategy mode if your account is using:

• Spot or futures account mode

• Isolated margin positions

• Options trading

• Flexible loans

• Borrow to transfer out

• Strategies that create virtual sub-accounts (such as grid trading or copy trading)

Please make sure your account meets all the above requirements before switching modes.

How do I enable or switch to Delta neutral strategy mode?

This feature is available to VIP users only. You can enable or switch strategy mode using one of the following methods:

1. When creating a sub-account

When you create a new sub-account:

1. Go to Sub-accounts > Create sub-account

2. On the creation screen, select Delta neutral strategy mode under Strategy mode

2. From sub-account management

1. Go to Sub-accounts > Sub-account management

2. Select the sub-account you want to modify

3. Tap More > Strategy mode

4. Choose Delta neutral from the list

3. From your profile

1. Go to Profile > VIP permissions

2. Under Strategy mode, select Delta neutra

Note: the strategy mode setting applies only to the current account and does not affect other sub-accounts.

FAQ

1. Why can’t I switch to Delta neutral strategy mode?

You won’t be able to switch if your account doesn’t meet the required conditions. Please check that:

• You’re a VIP user

• Your account is in Multi-currency mode or Portfolio margin mode

• You’re not using unsupported features (such as isolated margin, options, flexible loans, or virtual sub-account strategies)

• Your Delta equity ratio is ≤ 0.2

• Your borrowing limits are sufficient

2. How is the borrowing limit calculated in Delta neutral strategy mode?

• USDT: The Delta neutral sub-account has an independent borrowing limit, calculated separately from the general strategy sub-account.

• Other cryptocurrencies: All sub-accounts share the borrowing limit of the master account.

3. How does the ADL protection work in Delta neutral strategy mode?

The system automatically identifies hedged positions within the same cryptocurrency (for example, BTC spot + BTC perpetual short). These hedged positions are ranked lower in the ADL (auto-deleveraging) queue, which reduces the likelihood of being auto-deleveraged.

Unhedged positions follow the standard ADL ranking rules.

4. What happens if my Delta equity ratio exceeds the limit?

• >0.2: Unable to transfer assets from the trading account.

• >0.3: You can only place orders that lower the Delta, and there can only be one open order for the same cryptocurrency.

• If delta exceeds 500,000 USD, the system will cancel all limit orders and market orders.

5. Does Delta neutral strategy mode support API settings?

Strategy mode can be modified via API. However, it cannot be set at the time of sub-account creation. You'll need to first create the sub-account, then update the strategy mode through the API.