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Hedged mode

Earn boosted Berachain rewards with a hedge that fully covers your deposit's BERA exposure. The hedge lives on Hyperliquid, sized 1:1 against your Berachain leg, and uses leverage so most of your capital still works for yield.

What changes vs naked mode

Naked mode earns rewards while you hold a leveraged Berachain position. If BERA price drops, your equity drops with it. If it rises, you earn more.

Hedged mode adds a short on Hyperliquid that fully offsets the BERA exposure of your deposit dollar-for-dollar. When BERA falls, the hedge earns; when it rises, the hedge gives back. Net effect: the BERA price stops driving your P&L — you keep the yield, and you stop carrying the directional risk on the capital you put in.

How your deposit is split

With 3× leverage on Hyperliquid we only need 25% of your deposit as margin to fully hedge the other 75%. So the split is:

  • 75% → Berachain leg. Leveraged yield loop on oriBGT / WBERA — same earnings engine as naked mode.
  • 25% → Hyperliquid margin. Bridged via Jumper in ~3 seconds. Margin for a 3× BERA short.
  • HL short notional = 75% of deposit. Equal to the Berachain leg dollar-for-dollar. Your deposit's BERA price exposure is fully covered.

Example: a $20 deposit places $15 in the Berachain leg, sends $5 to Hyperliquid as margin, and opens a $15 BERA short on Hyperliquid (3× × $5 = $15).

What it costs

You give up some upside on BERA price for steadier returns. Realised APY tracks the yield spread on Berachain (oriBGT rewards minus WBERA borrow cost) plus or minus the funding rate on Hyperliquid. The dashboard always shows the modeled APY at today's live rates.

The smart-pause

Hedging on Hyperliquid normally pays a small amount per hour (called "funding"). When that funding flips negative and stays negative for a day, the autonomous system auto-pauses your hedge until conditions improve. While paused, you have full BERA exposure again — same as naked mode.

This is by design. Holding a costly hedge would eat your Berachain earnings. The pause prevents that.

Your dashboard always shows whether your hedge is currently active or paused.

Step by step

  1. You deposit USDC (minimum $20 for hedged mode).
  2. 75% goes into the Berachain leg. 25% bridges to Hyperliquid and margins a 3× BERA short that matches the Berachain leg dollar-for-dollar.
  3. The autonomous system checks your hedge every 5 minutes. If margin gets tight on Hyperliquid, it trims the hedge to protect your collateral. If funding turns costly, it pauses the hedge.
  4. When you withdraw, both legs unwind together. Your Berachain slice closes; the matching slice of the Hyperliquid short closes alongside it. USDC lands back in your wallet on the same transaction; the Hyperliquid margin returns in 15-30 minutes via the HL bridge.

Strategy capacity

As more capital deposits, rates compress and APY drops. The strategy capacity page shows the live forecast — current APY, soft cap, hard cap. Deposits above the soft cap still work; you just earn less.

Risks

  • Hyperliquid counterparty risk. If Hyperliquid has issues, your hedge margin on HL is at risk (the 25% of your deposit that sits there as collateral). Your Berachain leg stays untouched.
  • Bridge stuck. Bridges can fail mid-flight. We surface stuck-funds recovery widgets so you can always reclaim your money manually.
  • Funding cost. When funding turns negative for long stretches, the hedge auto-pauses to protect you. The pause means you lose price protection during those windows.
  • Tracking error. The hedge anchors to your deposit dollar amount, not to the leveraged Berachain loop's internal rebalances. Lever-up / lever-down events on the Bera leg don't move the hedge. Some short-term residual drift is normal.
  • Smart contract risk. Same as naked mode. Audited but not infallible.

Recovering HL margin

After a full withdraw, the Hyperliquid margin gets released — either to your HL Perp withdrawable balance or to your HL Spot USDC. In both cases the money is still on Hyperliquid until you manually withdraw it to Arbitrum and bridge back to Berachain.

We automate everything on the Berachain side. The HL → Arbitrum → Berachain leg stays manual today because Hyperliquid only allows withdrawals on your own signature, and we don't yet run a sponsored Arbitrum relayer. The dashboard shows a “Recover HL margin” banner whenever you have more than $1 sitting on HL and no active hedge. Clicking it expands the four-step recipe:

  1. Open the Hyperliquid app at app.hyperliquid.xyz with the same wallet you use here. Spot tab shows your USDC balance; Perp tab shows the leftover margin.
  2. Click Withdraw → withdraw to Arbitrum. Hyperliquid only withdraws to Arbitrum. Use the same wallet address (Arbitrum and Berachain share EVM addresses). The signedwithdraw3 action settles in about 5 minutes.
  3. Bridge Arbitrum USDC → Berachain via Jumper. We pre-fill the route — Arbitrum USDC → Berachain USDC.e — and the exact amount you just withdrew, so all that's left is to click Bridge and sign the LiFi route.
  4. USDC.e arrives in your Berachain wallet. Typically 2–5 minutes after the bridge confirms. Re-deposit, hold, or move it on as you like.

We'll automate this leg end-to-end once a sponsored Arbitrum relayer ships. Until then, the dashboard banner is your launch pad.

How to disable the hedge

Click the hedge status pill on your dashboard → "Disable hedge." The system unwinds the Hyperliquid position, brings the USDC back to Berachain, and asks you whether to add it to your Berachain leg or withdraw it. Your Berachain position keeps running either way.

Your control

  • You can withdraw any portion any time.
  • You can disable the hedge any time.
  • You can revoke the autonomous system's access to your vault any time, from the dashboard.
  • Your vault is non-custodial. Only you can take funds out.

Hedged mode is in pilot. Deposits are capped while we monitor. Start small, get comfortable, then scale up.