Delta-Neutral
A position structured to have no directional exposure, earning yield or spread regardless of which way price moves.
A delta-neutral strategy offsets directional risk so the position’s value doesn’t change with the asset’s price — “delta” being the sensitivity to price. A common crypto example: hold spot and short an equal amount of perpetuals, so price moves cancel out while you collect the funding rate — a basis trade.
Delta-neutral positioning is how funds harvest yield from crypto’s volatility without betting on direction, and it underpins some yield-bearing products. “Neutral” isn’t “riskless,” though: funding can flip, the hedge can slip, and counterparty or exchange failure remains. It removes price risk, not all risk — a distinction that has surprised more than a few yield-chasers.