GRIMOIRE · HEDGING · PERPS

Hedge Adept

Maintains a delta-neutral perp leg to immunise LP and farming positions from directional drift.

What it does

LP and farming positions carry directional exposure to the underlying. The Hedge Adept opens an offsetting perp short, sized to neutralize that exposure, and rebalances it as the underlying position drifts.

Strategy

Compute the current delta of the watched position (e.g. an LP).
Target delta is whatever targetDelta specifies — typically 0 for full neutrality.
If the live delta diverges from target by more than rebalanceDriftPct, adjust the perp leg.
Respect maxLeverage — never increase position size to chase delta if that means crossing the leverage cap.

Parameters

Parameter	Default	Meaning
`targetDelta`	0	Desired net delta to maintain.
`rebalanceDriftPct`	5	Drift from target before rebalancing.
`maxLeverage`	2	Hard cap on leverage. Never crossed for delta chase.
`fundingGuardBps`	50	Annualised funding cost above which agent pauses.

Venues

Synthetix v3 Perps — native on Base, deepest ETH liquidity.
Vertex — broader asset coverage.
Hyperliquid — best for niche perps.

Risks

Example intent

typescriptimport { defineIntent, WETH, BASE } from "@magicscodes/sdk";
import { hedgeAdept } from "@magicscodes/spells";

export const lpHedge = defineIntent({
  goal: "Maintain delta-neutral exposure on the ETH leg of my LPs",
  budget: { collateralUsd: 5000n },
  bounds: {
    chains: [BASE],
    venues: ["synthetix", "vertex", "hyperliquid"],
    targetDelta: { asset: WETH, value: -1.0 },     // short 1 ETH equivalent
    rebalanceDriftPct: 5,
    maxLeverage: 2,
    fundingGuardBps: 40,
  },
  cadence: {
    checkEveryMin: 10,
    notifyOn: ["rebalance", "funding-warning", "halt"],
  },
  agentHint: hedgeAdept,
});

Strategy

Compute the current delta of the watched position (e.g. an LP).

Target delta is whatever targetDelta specifies — typically 0 for full neutrality.

If the live delta diverges from target by more than rebalanceDriftPct, adjust the perp leg.

Respect maxLeverage — never increase position size to chase delta if that means crossing the leverage cap.

Parameter

Default

Meaning

targetDelta

Desired net delta to maintain.

rebalanceDriftPct

Drift from target before rebalancing.

maxLeverage

Hard cap on leverage. Never crossed for delta chase.

fundingGuardBps

Annualised funding cost above which agent pauses.

Example intent

typescriptimport { defineIntent, WETH, BASE } from "@magicscodes/sdk"; import { hedgeAdept } from "@magicscodes/spells"; export const lpHedge = defineIntent({ goal: "Maintain delta-neutral exposure on the ETH leg of my LPs", budget: { collateralUsd: 5000n }, bounds: { chains: [BASE], venues: ["synthetix", "vertex", "hyperliquid"], targetDelta: { asset: WETH, value: -1.0 }, // short 1 ETH equivalent rebalanceDriftPct: 5, maxLeverage: 2, fundingGuardBps: 40, }, cadence: { checkEveryMin: 10, notifyOn: ["rebalance", "funding-warning", "halt"], }, agentHint: hedgeAdept, });