Why does this opportunity exist?
24/7 markets for stocks and commodities are new, and the crowd on them leans heavily one way — usually long, with leverage. Someone must take the other side, and the funding mechanism pays them to do it. It's rent for a service, not a glitch, which is why it doesn't vanish overnight — though it will likely compress as professional capital arrives.
What happens to my money if the bot stops?
Nothing moves. Positions simply stop being updated, and you (or the bot on restart) can close them. The agent key can't withdraw, and the system's risk gates always allow closing — they only ever block opening new trades.
Why not just hold the highest-yield asset?
A single-venue position is a price bet wearing a yield costume — one bad week erases a month of rent. Pairing both venues cancels the price move and keeps only the rate gap. Lower headline number, vastly better risk shape.
How much can it handle? Will returns shrink as money joins?
Sizing is capped at a fraction of the thinner venue's open interest per pair, so the strategy stays a guest at the table. Capacity grows with the venues — but yes, more capital chasing the same rent eventually compresses it. The dashboard shows the live state, not a brochure.
Is this live yet?
The strategy is in its paper-trading phase — running on practice money against real market data, with every decision logged on-chain. Live, non-custodial onboarding opens after a 4-week validation gate. The 142-day backtest covers all real market data since venue launch; the paper-trading run will be the first live track record. You can watch every decision on the dashboard right now.
Can I lose the money I put in?
Yes, you can — and we want to be direct about this before you go any further. The strategy is designed to be price-neutral (a move in Bitcoin does not directly cause a loss), but three real scenarios can hurt you: (1) Hyperliquid, the exchange where your funds sit, is a 2024 protocol with smart-contract and platform risk — if it suffers a serious exploit or failure, funds on the exchange could be affected; (2) extreme market dislocations can briefly break the hedge, causing mark-to-market losses before the system rebalances; (3) sustained near-zero funding rates erode returns without a capital loss. The first scenario is the most serious and least controllable. This is not a savings account. Only deposit what you can afford to lose entirely.
Who controls my money — can BasisYield take it?
No. BasisYield cannot withdraw or transfer your funds under any circumstances. Your assets remain in your own Hyperliquid wallet throughout. BasisYield operates using a 'trade-only agent key' — think of it as a power of attorney limited strictly to placing and cancelling trades. The exchange protocol itself enforces this restriction; it is not a policy we could override even if we wanted to. Our only technical capability is to open and close positions on your behalf. You can revoke this permission with one click at any time.
What happens to my money if BasisYield shuts down tomorrow?
Your funds remain in your Hyperliquid wallet and are unaffected. Because BasisYield has no custody of your assets, a company shutdown means the strategy stops trading — not that your money disappears. Open positions would need to be closed, which you can do directly through Hyperliquid's own interface without involving BasisYield at all. There is no lock-up and no deposit held by us.
Is 24% APY realistic? Why isn't this too good to be true?
The comparison you are making — 24% versus a 4-5% savings account — is the right question to ask, and the honest answer is: the extra return comes with extra risk. The yield source is real: leveraged traders on Hyperliquid pay a fee every hour to hold their positions, and this strategy collects that fee while holding both sides to cancel price risk. The 24% is a backtest figure over 142 days, not a guarantee. Rates fluctuate hourly and can compress toward zero. The Sharpe ratio of 2.80 means the returns have historically been strong relative to their volatility — but the risks specific to a 2024 decentralized exchange (no FDIC, smart-contract risk, no regulatory protection) are genuinely different from a savings account. If those risks are not acceptable to you, a savings account is the right choice.
What exactly is a 'funding rate' and how does it make me money?
A funding rate is a periodic fee that leveraged traders on perpetual-futures exchanges pay to keep their positions open. Think of it like rent: if most traders are betting the same direction (usually long, using leverage), the exchange charges the crowded side a fee every hour and pays it to whoever is on the quiet side. BasisYield holds positions on both sides of the same asset simultaneously — one position on each of two exchanges — so the price move on one leg cancels the other. What remains is the hourly fee collected from the crowded side, delivered to your wallet continuously, without taking a directional price bet.
Is this FDIC insured? What happens if Hyperliquid fails?
No. FDIC insurance covers USD deposits at regulated US banks only — it has never covered cryptocurrency or DeFi protocols. If Hyperliquid (the exchange where your funds are held) suffered a catastrophic failure — a smart-contract exploit, insolvency, or regulatory shutdown — funds on the exchange could be partially or fully lost. This is the primary unhedgeable risk of this strategy. There is no government backstop. This is a material difference from a bank savings account, and it is the main reason why the yield is higher: you are being compensated for accepting that risk.
Can I withdraw my money at any time?
Yes, under normal conditions. Because your funds are in your own Hyperliquid wallet, you can withdraw at any time without asking BasisYield for permission. There is no lock-up period enforced by this platform. Open trading positions would need to be closed first — this takes minutes under normal market conditions. However, during periods of extreme market stress or Hyperliquid platform incidents (the exchange temporarily restricted withdrawals during a liquidity crisis in March 2025), access can be delayed. You should not deposit funds you may need on short notice.
Do I owe taxes on the earnings?
Almost certainly yes — yield from this strategy is likely taxable income in most jurisdictions. BasisYield does not issue tax forms (no 1099 equivalent), because it is a non-custodial tool, not a broker. You are responsible for tracking and reporting your own gains. In the US, the IRS requires reporting of DeFi income regardless of whether you receive a form. Depending on your situation, funding income may be treated as ordinary income or capital gains. The number of taxable events can also multiply quickly if positions change frequently. Consult a tax professional who understands cryptocurrency before participating.
What is the minimum deposit and what does it actually cost me?
The minimum is $100. The only cost charged by BasisYield is a small builder fee on each executed trade — approximately 2 basis points (0.02%) per trade, taken on-chain and visible with every fill. On a $10,000 position running typical trade frequency, this amounts to roughly $130 per year. There is no management fee, no performance fee, no subscription, and no withdrawal fee charged by this platform. Standard Hyperliquid network costs also apply and are not controlled by BasisYield.
Is BasisYield regulated? Who do I complain to if something goes wrong?
BasisYield is not regulated by any financial authority — it is a DeFi tool, not a licensed investment adviser or broker. There is no regulatory ombudsman, no compensation scheme, and no government body that oversees it. If something goes wrong due to a market event, a platform issue, or a smart-contract exploit, there is typically no formal recourse. This is a fundamental characteristic of decentralized finance. The protection model here is technical — your funds cannot be taken by BasisYield — not legal. Understand this before depositing.