RenzoFinance (@RenzoAI): Renzo Basis: Week 1 FAQ

Renzo Basis: Week 1 FAQ Renzo Basis and the Basis Boost campaign are live. We’ve received similar questions from users looking to onboard and earn automated basis yields: how it works, how yields change, what happens on a bad day, and who is holding the money. Everything is answered below. How the trade works A basis trade is two positions held at once. You own spot, and you short the perpetual against it. The legs cancel. If BTC rises, your spot gains and your short loses roughly the same amount. If it falls, the reverse happens. Price direction stops mattering. What you are left with is funding. Funding is an hourly payment that flows between longs and shorts on a perp. Hold spot, short the perp, and you sit on the receiving end whenever longs are paying. Trading desks have run this for years. Doing it yourself means sizing two legs, watching margin, rebalancing as the basis moves, and unwinding without slipping. Renzo Basis does the hard work and you keep all the yield. What actually moves the yield Funding exists to keep a perp priced close to spot. When more traders are long than short, the perp drifts above spot, and longs pay shorts an hourly fee to pull it back down. When the crowd flips short, the perp drifts below spot and shorts pay longs instead. You are not betting on price. You are exposed to which side of the perp is crowded. A rapid rally is good for the position. Leveraged longs pile in and funding climbs. During a flush those longs get liquidated, the crowd tips short, and funding can go negative for a few days. Negative funding days Funding rates can turn negative depending on market conditions. What happens next is set by the funding window risk level you choose when you open. Conservative closes earlier while more tolerant risk settings holds through until funding rates change back to positive. You can also close it yourself at any point if you prefer. What the safeguards do Automated safeguards watch hedge balance, funding, and how close the short leg is sitting to liquidation. When risk rises they can rebalance the legs, add margin to push the liquidation price further out, or close the position.  Who is holding your money You are. Your funds stay in your own Hyperliquid account and never touch a Renzo wallet, managed through a trade-only key that places trades and cannot withdraw, revocable by you whenever you want. Getting started Connect your wallet, fund it with USDC and gas, pick a strategy, choose a risk level, sign once to approve the trade-only key. Live assets right now: BTC, HYPE, ZEC, ETH Open a position today. Trust the spread. app.renzofinance.com