How to hedge the risk?

LP can dynamically hedge in the other market.

LP can first read exposure to the perpetual contracts from the blockchain.

Then a proper strategy can be used to hedge the risk.

  1. Try to hedge every single trader from traders

  2. Hedge the net position change when net position exceeds certain level

  3. No hedging

Each of the strategy above gives LP different potential risk levels and expected cost and returns.

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