Early-stage strategy with limited TVL.

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TL;DR

  • The Delta Neutral Vault pairs offsetting long and short positions to reduce directional market exposure, earning from spread, basis, funding, or carry rather than outright price direction.
  • Risk management is built into the strategy itself: the goal is to capture inefficiency between positions, not to bet on whether a market rises or falls.
  • Delta neutral does not mean risk-free. Basis moves, funding shifts, and hedge failures can still produce losses.
  • You need ORAI staked to deposit. This is an early-stage strategy.

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Access

Vault deposit access is based on ORAI staking allocation. Allocation rules may be adjusted over time. To check your current allocation, visit quant.orai.io or see the Vaults access section.

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Live performance

View Delta Neutral Vault live performance — see current share price, TVL, APR, and position history in Quant Terminal.
All performance data is available live in the app. We do not publish spot numbers in documentation because they change continuously.

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How it works

The vault trades paired positions across spot and derivatives, or across correlated instruments. A common structure is long one leg and short another so the combined book has limited net delta.The exact market can vary, but the strategy always centers on hedged structures rather than naked directional positions.

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Performance characteristics and risk

The Delta Neutral Vault usually has lower directional volatility than long-only or signal-driven trading vaults, but it is not flat. Basis and funding markets can move sharply, and imperfect hedges still create swings.Returns are often steadier than directional strategies, though they can compress for long stretches when spreads are crowded or carry is unattractive.
Drawdowns are typically smaller than leveraged directional trading, but sharp dislocations can still produce meaningful losses. Basis widening, funding flips, and forced hedge rebalancing can all generate drawdown even when the intended neutrality holds.
The main failure mode is hedge failure — if the long and short legs stop offsetting each other as expected, the vault can become unintentionally directional and absorb losses it was not designed to carry.Secondary failure modes include: one leg becoming hard to roll, borrow costs spiking, funding flipping sign, or forced liquidations on a leveraged hedge overwhelming the strategy’s neutrality.

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Best use

This vault may suit you if:
  • You want active strategy exposure with a more defensive, market-neutral profile.
  • You prefer strategies that target inefficiency capture over outright directional speculation.
  • You are comfortable with steadier, lower-upside returns relative to aggressive trading vaults.
This vault may not suit you if:
  • You expect the strategy to be risk-free because it is hedged — basis and funding risk are real.
  • You want exposure to large directional market moves.
  • You need instant liquidity access at all times — hedge rebalancing can affect withdrawal timing.

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Fees

20% performance fee on profits. Deposit and withdrawal fees per vault configuration. See live fee values in the app at quant.orai.io.

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FAQ

No. Delta neutral reduces directional exposure, but it does not remove basis risk, funding risk, execution risk, or liquidation risk.
Because the hedge is never perfect. Spreads move, funding changes, and fast markets can create temporary or persistent imbalance between the two legs.
Markets with healthy carry and orderly hedge execution tend to help most — when spreads are attractive without being disorderly.
Violent dislocations, crowded basis trades, and sudden changes in funding or borrow conditions are the main threats.
Quant Vaults and Quant Agents involve trading risk. Performance is not guaranteed, and users may lose money. Historical results are provided for transparency only and should not be treated as financial advice.