Cathena vault: Prospectus
Last updated
Last updated
Traders looking to access Cathena delta neutral strategy can simply deposit into the vault, and get access to the strategy built on the terminal.
Cathena, the fearless feline warrior, prowls the markets with a delta-neutral strategy, ensuring she never gets caught off guard by wild price swings. Using real-time order book data, she skilfully juggles synthetic option positions across PURR, HYPE, and BTC to maintain a balanced stance, dodging directional exposure like a ninja cat avoiding a bath.
At its core, the strategy consists of:
Hunting Funding Premiums: If someone’s paying more for longs, Cathena’s short. If shorts are paying more, she’s long. Easy money, easy naps.
Greeks Management: Adjusting for gamma, vega, and theta like a cat fine-tuning its leap onto the highest shelf.
Volatility Spike Hedging: When the market sneezes, Cathena’s already wearing a raincoat. Black-Scholes-derived adjustments keep her from getting whipsawed.
Risk-Controlled Execution: Circuit breakers and liquidity-sensitive position sizing ensure the strategy never chases its own tail.
Cathena’s exposure remains market-neutral at most times, dynamically adjusting position sizing and hedge ratios to capitalize on inefficiencies. Her toolkit includes:
1. Delta-Neutral Hedging:
Always maintaining net-zero exposure across synthetic positions in PURR, HYPE, and BTC.
If one position drifts, it’s rebalanced with the precision of a cat knocking over a single glass of water (and only that one).
2. Funding Rate Arbitrage:
Positive funding rates? Take the other side and let the market pay you.
Negative funding rates? Do the reverse. It’s a cat-and-mouse game, and Cathena wins.
Cathena never risks more than she can afford to lose (because a cat only has nine lives). The strategy ensures:
Volatility-Adjusted Positioning: Market regimes shift, so position sizes adapt dynamically.
Max Loss Capped: Each trade’s risk is calibrated to never exceed 5% of AUM, because reckless bets are for dogs.
Circuit Breakers: Auto-claws deploy if the market behaves erratically, avoiding unnecessary furballs.
(Simulated Backtest)
Leverage Assumed: 2x (max.)
Start Date: 2024-12-14
End Date: 2025-01-14
Max Drawdown: 3.47
Annualised Gross Return (%): 51.41
Mean AUM Usage (%): 46.81
Sharpe Ratio: 1.521 (Sharper than Cathena’s claws)
❗️Important Simulation Disclaimer (Fine Print, But With Claws)❗️
This backtest was conducted using a standard specification and does not guarantee live results. Funding rates at volatility spikes on historical data are average estimates. Markets are as unpredictable as a laser pointer, and actual returns may differ based on leverage, slippage, and real-world execution conditions. Cathena takes no responsibility if live trading underperforms simulated results—just like she takes no responsibility for broken vases.
Trade wisely, hedge smartly, and stay on your paws! 🐾
Daily returns estimate for last 1 month with peak day shown here. Returns skewed by Hype performance, and actual returns vary with leverage, slippage and real world funding rate conditions.
