FAQ

If you have any questions about Hedos, join our community, and we’ll be happy to support you.

Below are some of the most frequently asked questions from our users:

What are the benefits of using Hedos?

Hedos allows users to earn high yields with stablecoins on the Aptos network while minimizing exposure to market volatility. The protocol abstracts away complex strategies, offering a simple deposit experience with flexible risk options through Safety Mode and Turbo Mode.

What is the delta hedging strategy?

Delta hedging is a risk management technique where positions are balanced so that opposing positions offset price movements in one direction. In Hedos, this means:

• Allocating stable assets to earn yield.

• Opening offsetting positions in derivatives (e.g., perpetual futures) to neutralize exposure.

• Adding liquidity to pools: capturing trading fees and incentives, while offsetting exposure with hedging positions.

These strategies ensure that profits mainly come from funding rate differentials, arbitrage spreads, and incentives, not market speculation.

Can deposits have negative interest rates?

In extreme market conditions, yields may decrease and, in rare cases, could become negative if hedging costs outweigh returns. However, Hedos is designed with risk controls and dynamic strategies to minimize this possibility and protect depositors.

How does the protocol distribute rewards to specific users?

Rewards are distributed based on the user’s chosen mode in the Vault:

• Safety Mode users receive more stable, predictable returns.

• Turbo Mode users receive higher yields during profitable conditions but take on greater downside risk.

Aren't perpetual futures funding rates volatile?

Yes, funding rates can be volatile. However, Hedos mitigates this by:

• Continuously rebalancing positions to reduce exposure.

• Diversifying across multiple markets and strategies.

• Combining funding rate income with other yield sources (e.g., lending yields, protocol incentives) to stabilize returns.