Position Types
Understanding the three main position classifications in Hedgemony
Position Classifications
Important:
Hedgemony recognizes three distinct position classifications that traders can utilize based on their market outlook and strategy preferences.
Stable Positions
Stable positions are comprised of one or more stablecoins. These assets are designed to be fiat-pegged and trade reliably at a given face value. Swapping into a stable position typically implies a bearish bias about the general market.
100% USDT
Volatile Positions
Volatile positions contain one or more assets that are not defined as a stablecoin. Swapping into a volatile position typically implies a bullish bias about the general market.
100% WMONAD
Adaptive Positions
Adaptive positions are dynamic and change depending on their governing strategy's logic. They can be both stable and volatile, and may fluctuate between both states as specific conditions are met.
Note:
These positions are reserved for advanced users and can only be accessed by enabling the advanced UI.
Swapping into an adaptive position can incorporate both bearish and bullish biases by executing according to nuanced directives as predetermined conditions are met.
Example 1: BTC Price-Based Strategy
Starting conditions:
- Current WBTC price: $60,000
- Initial position: 100% USDT
- Maintains USDT position while 1 WBTC ≥ $30,000
- Converts to WBTC when price ≤ $15,000
- Conversion occurs in 10% increments for every $1,500 drop below $30,000
Example 2: ETH/BTC Ratio Strategy
Portfolio composition based on ETH/BTC ratio:
- When ETH/BTC ≥ 0.05: 50% WBTC / 45% WETH / 5% WMONAD
- When ETH/BTC < 0.0499: 40% WETH / 60% WMONAD
Note:
Any position may be freely converted from one type to another consistent with the Hedgemony fees structure.