How Delta Neutral Mode Works in Unified Trading Account?

[Estimated reading time: 4–5 minutes]

This article explains what Delta Neutral Mode is, how it works, how to enable it, and when a position can receive ADL (Auto-Deleveraging) ranking protection. It also includes practical examples to help you understand the account-level and asset-level evaluation rules.

 

What is Delta Neutral Mode?

Delta Neutral Mode is designed for traders using hedging or arbitrage strategies under Unified Trading Account.

In this mode, you can combine:

• Spot trading

• Cross margin trading

• Cross futures trading

The system checks your directional exposure, also called Delta, at both:

• The account level

• The asset level

When your account meets the neutral conditions, eligible positions receive differentiated risk controls and lower ADL priority. This may reduce the chance of auto-deleveraging during extreme market conditions, but it does not remove the risk completely.

Delta Neutral Mode is suitable for:

• Funding rate arbitrage

• Basis arbitrage

• Multi-market hedging across spot, margin, and futures

• Quantitative neutral strategies

Key advantage

When your account meets the Delta Neutral criteria, eligible hedged positions receive lower ADL priority.

This means:

• Hedged positions rank lower in the ADL queue

• The chance of being auto-deleveraged may be reduced during extreme market conditions

Supported scope

Item	Supported scope
Eligible account	Unified account
Trading types	Spot / Cross margin / Cross futures
Futures types	USDT-M futures / USDC-M futures / Coin-M futures
Environment	Live trading / Demo trading
Access channels	App / Web / API (ongoing rollout)

 

How to enable Delta neutral mode?

Delta Neutral Mode is currently available through whitelist. Qualified users can switch modes on the trading page:

Settings → Trading account mode

In demo trading, there are no permission restrictions. All users can try this mode there.

Before switching account modes, all of the following conditions must be met:

1. Your account has permission to use Delta Neutral Mode

2. There are no isolated futures positions

3. There are no open orders for isolated futures

How Delta Neutral Mode is evaluated?

The system uses the account Delta metric to measure your account’s overall directional risk exposure.

1. Account Equity (USD)

Definition: The total USD value of all margin assets in the account after conversion.

Formula: Account Equity (USD) = ∑ all assets × (asset equity × asset USD price)

Note: Assets that are not eligible as margin assets are not included in the asset equity calculation.

2. Delta (USD)

Definition: The estimated directional risk exposure of the account.

Formula: Delta (USD) = ∑ all assets ABS [asset equity + perpetual futures Delta + delivery futures Delta] × asset USD price

Important notes

• Net excess spot long positions are not counted toward risk exposure

• Stablecoin assets are not included in the Delta calculation

• Stablecoins are still included in account equity

• Assets that are not eligible as margin are not included in the asset equity calculation.

3. Delta Equity Ratio

Formula: Delta Equity Ratio = Delta (USD) ÷ Account Equity (USD)

• When the Delta Equity Ratio is 20% or below, the account is considered neutral.

• Please refer to the value shown on the trading page.

 

How ADL protection works for hedged positions?

When a position meets the hedging criteria, the system applies a dedicated ADL ranking algorithm.

This means:

• Hedged positions are ranked lower overall in the ADL queue

• The ranking logic among hedged positions remains the same as for regular positions

For more details, refer to the article on the Bitget Futures: Introduction to Auto-Deleveraging.

Criteria for identifying a hedged position

A position must meet both the account-level and asset-level conditions below.

1. Account-level condition

Your Delta Equity Ratio must be 20% or below.

Please refer to the value shown on the trading page for the latest figure.

2. Asset-level condition

The futures position in a single asset must be effectively hedged by spot holdings in the same asset.

Validation formula: Net futures position for the asset ÷ total position for the asset ≤ 5%

• Only positions that meet both conditions can receive ADL ranking protection as hedged positions.

• Assets that are not eligible as margin are not included in the asset equity calculation.

Examples of hedged position evaluation

For easier understanding, the examples below assume:

• BTC price = 60,000 USD

• ETH price = 2,000 USD

• Account Delta Equity Ratio ≤ 20%

• Net futures position for the asset ÷ total position for the asset ≤ 5%

• Fees and unrealized PnL are not included

Note: These examples are for illustration only.

Scenario 1: Meets the hedged position criteria

Type	Account holdings / positions
Spot	10 BTC, 5 ETH
Futures	BTCUSDT perpetual futures short 10 BTC

1. Account-level calculation

A. Account equity Account equity = 10 × 60,000 + 5 × 2,000 = 610,000 USD

B. Delta (USD) Delta (USD) = 0 + 0 = 0 USD

C. Delta Equity Ratio Delta Equity Ratio = 0 ÷ 610,000 = 0%, which is ≤ 20%. Therefore, the account-level condition is met.

2. Asset-level calculation (BTC position)

A. Net futures position for the asset Net futures position = 0

B. Total position for the asset Total position = 10

C. Net futures position ÷ total position 0 ÷ 10 = 0%, which is ≤ 5%. Therefore, the asset-level condition is met.

Conclusion: This position meets both the account-level and asset-level conditions. It is classified as a hedged position and is eligible for ADL ranking protection.

 

Scenario 2: Does not meet the hedged position criteria (account-level condition not met)

Type	Account holdings / positions
Spot	10 BTC
Futures	BTCUSDT perpetual futures long 5 BTC

1. Account-level calculation

A. Account equity Account equity = 10 × 60,000 = 600,000 USD

B. Delta (USD) Delta (USD) = 5 × 60,000 = 300,000 USD

C. Delta Equity Ratio Delta Equity Ratio = 300,000 ÷ 600,000 = 50%, which is > 20%. Therefore, the account-level condition is not met.

Conclusion: This position does not meet the account-level condition. It is not classified as a hedged position and is not eligible for ADL ranking protection.

 

Scenario 3: Does not meet the hedged position criteria (asset-level condition not met)

Type	Account holdings / positions
Spot	500,000 USDT
Futures	BTCUSDT perpetual futures long 1 BTC

1. Account-level calculation

A. Account equity Account equity = 500,000 + 1 × 60,000 = 560,000 USD

B. Delta (USD) Delta (USD) = 1 × 60,000 = 60,000 USD

C. Delta Equity Ratio Delta Equity Ratio = 60,000 ÷ 560,000 = 10.71%, which is ≤ 20%. Therefore, the account-level condition is met.

2. Asset-level calculation (BTC position)

A. Net futures position for the asset Net futures position = 1

B. Total position for the asset Total position = 1

C. Net futures position ÷ total position 1 ÷ 1 = 100%, which is > 5%. Therefore, the asset-level condition is not met.

Conclusion: This position meets the account-level condition but does not meet the asset-level condition. It is not classified as a hedged position and is not eligible for ADL ranking protection.

 

 

FAQs

1. Do I need to close positions before enabling Delta Neutral Mode?
No. You do not need to close positions, but you must meet the account mode switching requirements.

2. What happens if my account no longer meets the neutral criteria?
The system will automatically apply the standard account logic for risk management and ADL ranking.

3. Can different assets hedge each other?
No. Hedging is evaluated based on the same underlying asset. For example, BTC holdings can only hedge BTC futures positions.

4. Are stablecoin assets included in the Delta calculation?
No. Stablecoins such as USDT and USDC are not included in the Delta calculation. However, they are included in account equity.

5. Does enabling Delta Neutral Mode affect margin or liquidation rules?
No. Delta Neutral Mode mainly affects ADL ranking priority. It does not change margin calculations, liquidation rules, or risk control policies.

6. Why was my position not classified as a hedged position?
Possible reasons include:

• Your account’s Delta Equity Ratio exceeds the threshold

• The futures position is not effectively hedged by spot holdings in the same asset

• The asset-level net position ratio exceeds the limit

7. Does ADL ranking protection guarantee that I will not be auto-deleveraged?
No. It only lowers the position’s priority in the ADL queue. Auto-deleveraging may still happen during extreme market conditions.

8. I hold a large amount of spot assets. Why is my position still not considered hedged?
Delta Neutral evaluation is based on exposure in the same asset. Holding large amounts of other assets or stablecoins does not hedge a futures position in another asset.

 

 

 

 

Risk disclaimer

Delta Neutral Mode is designed to improve the trading experience for hedging strategies, but market fluctuations may still involve risks. Please participate in trading according to your own risk tolerance.

 

 

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