Funding Regime Capture
Hedged, not held.
Under the 17 October 2026 Swaps mandate, funding-rate carry is captured inside the same paired hedge-bot systems that harvest volatility. Markets are selected by measured impact at rebalance size, rather than market capitalisation, and the universe may include tokenised equity and commodity perpetuals.
Construction
Each system holds long and short legs on the same perpetual swap in hedge mode. The entry profile is 50/50 at the top of its range, widening to a controlled long skew of up to 65/35 at the floor. Where one-sided positioning offers carry, that income is assessed within the paired system; funding is variable and may become a cost.
Discrete Per-System Hedging
The hedge is the second leg on the same contract. The strategy does not use directional BTC exposure as a substitute for that leg. A long/short pair can retain net exposure, and market neutrality is an objective rather than a guarantee of zero delta or losses.
Execution & Sizing
The tear sheet describes approximately 2.5% of equity per system across approximately 29 systems, with margin utilisation near 70%. Measured market impact constrains execution size; account equity, notional exposure, the ratio and range width govern risk. Up to 100x per-system leverage is a cross-margin setting, not evidence of low risk. See the current Swaps mandate and tear sheet for the full terms.
Risk and Legal Disclosure
Margin Syndicate Limited (Company No. 12870584, England and Wales) is a software and systems firm. We are not an investment adviser, portfolio manager, broker or custodian and we are not authorised or registered by the Financial Conduct Authority.
We do not custody client funds in any service model.
Funding Capture trades perpetual contracts on smaller-capitalisation assets. These markets carry risks absent from BTC and ETH: exchange delisting with forced settlement at a time and price set by the exchange, auto-deleveraging of profitable positions during extreme moves, sudden leverage and margin bracket changes and liquidity gaps on exit. Discrete per-pair hedging reduces some directional exposure but does not remove net exposure, liquidation or venue and market-structure risks. Funding rates can compress or invert without warning, ending the carry that justifies a position. Rebalancing income depends on continued volatility and can fall below trading costs in quiet markets. Funding carry here sits within the paired hedge-bot mandate. The separate Hyperliquid grid-only SMA exception has a different, unhedged risk profile.