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  "id": "spot-perpetual-basis-risk",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/spot-perpetual-basis-risk/",
  "collection": "defi",
  "title": "Spot-perpetual basis risk: why a hedged position can still lose",
  "description": "Understand why equal long-spot and short-perpetual quantities can still lose money or be liquidated.",
  "aliases": [
    "spot perpetual hedge basis risk",
    "can a spot perpetual hedge lose money"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T19:18:00.092Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "Spot-perpetual basis is the difference between a perpetual’s price and its spot or reference price. Opposing spot and perpetual exposure can reduce directional sensitivity, but the difference between their prices can change. Funding, execution, collateral and forced-position-reduction risks remain; there is no scheduled expiry forcing a perpetual basis to converge.",
    "claimId": "spot-perpetual-basis-risk-quick-answer",
    "sourceIds": [
      "x425-defi-dydx-funding",
      "x425-defi-dydx-liquidation",
      "x425-defi-dydx-backstop"
    ]
  },
  "keyFacts": [
    {
      "label": "Basis",
      "value": "Funding is designed to encourage alignment, not guarantee identical prices.",
      "sourceIds": [
        "x425-defi-dydx-funding"
      ],
      "id": "basis",
      "claimId": "spot-perpetual-basis-risk-fact-basis"
    },
    {
      "label": "No maturity",
      "value": "Perpetuals have no scheduled final expiry.",
      "sourceIds": [
        "x425-defi-dydx-funding"
      ],
      "id": "no-maturity",
      "claimId": "spot-perpetual-basis-risk-fact-no-maturity"
    },
    {
      "label": "Separate margin",
      "value": "A hedged economic position can still face contract liquidation.",
      "sourceIds": [
        "x425-defi-dydx-liquidation"
      ],
      "id": "separate-margin",
      "claimId": "spot-perpetual-basis-risk-fact-separate-margin"
    }
  ],
  "prerequisites": [
    "perpetual-futures"
  ],
  "sections": [
    {
      "id": "example",
      "heading": "Track both entry and exit differences",
      "sourceIds": [
        "x425-defi-dydx-funding"
      ],
      "paragraphs": [
        "In a hypothetical linear example, one unit of spot is bought at 100 and one perpetual unit sold at 102. Later spot is sold at 110 while the perpetual is bought back at 113. Spot gains 10; the short loses 11; combined gross price P&L is −1.",
        "The basis widened from 2 to 3. Equal quantities did not make the combined outcome exactly zero. Funding and fees are additional."
      ]
    },
    {
      "id": "funding",
      "heading": "A quoted payment does not lock the spread",
      "sourceIds": [
        "x425-defi-dydx-funding"
      ],
      "paragraphs": [
        "A positive observed funding rate may benefit a short at that time, but the rate can reverse. A displayed annualization extrapolates an observation rather than committing future payments. Closing one side of the trade before the other temporarily leaves the position exposed to price changes."
      ]
    },
    {
      "id": "margin",
      "heading": "The collateral path matters",
      "sourceIds": [
        "x425-defi-dydx-liquidation",
        "x425-defi-dydx-backstop"
      ],
      "paragraphs": [
        "If spot is held elsewhere, its gain may not automatically support the short’s margin. A rapid rise can liquidate the short despite the overall hedge. Auto-deleveraging can also reduce a profitable counterposition. Remaining exposure then differs from the originally paired quantities."
      ]
    }
  ],
  "faq": [
    {
      "question": "Is a spot-perpetual hedge risk-free arbitrage?",
      "answer": "No. Variable basis, funding, execution and separate margin constraints can create losses or break the hedge.",
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      "statement": "Spot-perpetual basis is the difference between a perpetual’s price and its spot or reference price. Opposing spot and perpetual exposure can reduce directional sensitivity, but the difference between their prices can change. Funding, execution, collateral and forced-position-reduction risks remain; there is no scheduled expiry forcing a perpetual basis to converge.",
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          "locator": "Funding rates; premium; time intervals"
        },
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          "sourceId": "source-ba9f2069b72fa7c0",
          "locator": "Margin; fillable price; liquidation"
        },
        {
          "sourceId": "source-cb664621af4b8979",
          "locator": "Insurance fund; liquidations config; deleveraging"
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      "scope": {
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        "notes": [
          "Recomputed hedge: spot+10,short−11,total−1;basis2→3. Funding,noexpiry,separate margin and forced reduction risks checked."
        ]
      }
    },
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      "id": "spot-perpetual-basis-risk-fact-basis",
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      "statement": "Basis: Funding is designed to encourage alignment, not guarantee identical prices.",
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        "notes": [
          "Recomputed hedge: spot+10,short−11,total−1;basis2→3. Funding,noexpiry,separate margin and forced reduction risks checked."
        ]
      }
    },
    {
      "id": "spot-perpetual-basis-risk-fact-no-maturity",
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      "statement": "No maturity: Perpetuals have no scheduled final expiry.",
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        "notes": [
          "Recomputed hedge: spot+10,short−11,total−1;basis2→3. Funding,noexpiry,separate margin and forced reduction risks checked."
        ]
      }
    },
    {
      "id": "spot-perpetual-basis-risk-fact-separate-margin",
      "articleSlug": "spot-perpetual-basis-risk",
      "statement": "Separate margin: A hedged economic position can still face contract liquidation.",
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          "Recomputed hedge: spot+10,short−11,total−1;basis2→3. Funding,noexpiry,separate margin and forced reduction risks checked."
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      "label": "Default funding rates on dYdX",
      "publisher": "dYdX Operations Services",
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      "locator": "Insurance fund; liquidations config; deleveraging",
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  "related": {
    "articles": [
      "perpetual-funding-payments",
      "cross-vs-isolated-margin",
      "defi-arbitrage",
      "options-settlement-currency"
    ],
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    "wallets": []
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  "revisionHistory": [
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      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and separate automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “Spot-perpetual basis risk: why a hedged position can still lose.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/spot-perpetual-basis-risk/"
}