Whale Loans
Delta Neutral Vaults | Frequently Asked Questions

Wen Launch?

The delta neutral vaults development is complete but deployment is currently on hold until volume picks up on Kitten Finance. For more information on this and other in-progress development, check out our recent post.

What Does Delta Neutral Mean?

Delta neutral is a trading strategy utilizing multiple trades balancing positive and negative positions so there is zero exposure to the underlying asset.

Is There Market Exposure?

A Delta Neutral strategy means there is zero exposure to the underlying market. This means that the market could move in either direction dramatically and in either case, your portfolio's total profit/loss would be exactly 0. Because of this, the strategy is generally paired with leverage since it eliminates the chance of liquidations.
Traders typically use delta neutral strategies to profit either from time decay of options or funding rates.

What Market Does It Use?

We use the Kitten Finance ecosystem. They have several products but in this case, we only care about their synthetic leverage tokens, otherwise known as BEAR_X3 and BULL_X3.

Why Kitten Finance?

Why would we choose this over a more established synthetic token like Synthetix or Perpetual? It’s easy, Kitten has created a state of the art product offering more than anybody else.
Synthetic tokens each have their own drawbacks, I’m sure we have all been liquidated and then the price immediately bounces to new highs. The BULL/BEAR tokens solve this issue along with several others.
For a detailed introduction to their token and how it works, head on over to their blog post. I’ve included their comparison of synthetic token drawbacks compared to some of the biggest players right here.
Synthetic Token Comparison

Which Pairs Are Supported?


Does Kitten Have Fees?

The BULL/BEAR tokens have several fees built-in but don't be afraid, they are fully distributed to users to contribute to the ecosystem. For a detailed explanation see their post about it.

What Do The Vaults Do?

The vaults automatically executes the delta-neutral strategy for you, all you need to do is deposit BUSD and the smart contracts take care of the rest.
The contracts take a delta-neutral position, auto-balances, collects fees and much more. By buying a position you then benefit from future vault entrants and exits but also funding rates and anyone who buys into the BULL/BEAR tokens externally.

How Does It Perform?

The vaults allow you to make money from several spots.
1) When someone enters the market, the fee Kitten takes is distributed to holders in the market (including the vault) and you earn your share of that.

What are the vault fees?

We take a small 0.1% fee on entry and a 2% performance fee on exit. It’s important to note that the performance fee is calculated only from profit, so if you deposit $1000 and make $100, there is only a $2 fee on exit. We have such low fees compared to most products because we believe that we shouldn’t win unless you do too.
These fees are distributed 50/50 between Whale Loans and the HUMP tokens treasury.