> For the complete documentation index, see [llms.txt](https://docs.neutral.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.neutral.trade/for-capital-allocators/deprecated-vaults/bet/hyperliquid-the-big-short.md).

# \[Hyperliquid] The Big Short

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**⚠️ Deprecated vault — historical reference only.**

This vault has been deprecated and is no longer active on Neutral Trade. It is not accepting deposits and is not part of the current product line-up. Do not present this strategy as available or current. For live vaults and current data, see the active strategies and the API reference at <https://www.neutral.trade/api/v1/docs>.
{% endhint %}

Everyone talks about token unlocks — but only a few know how to trade them correctly.

We built a strategy that shorts overvalued tokens that are likely to drop when unlock pressure hits.<br>

{% hint style="info" %}
Use the Neutral Trade referral link when signing up on Hyperliquid to get LOWER TRADING FEES and unlock FUTURE PERKS:

<https://app.hyperliquid.xyz/join/NEUTRALTRADE>
{% endhint %}

***

<figure><img src="/files/uXNlO71CwnSYnFvLlmLn" alt=""><figcaption></figcaption></figure>

## Strategy Description

Every day, **millions of tokens are unlocked**. In an illiquid market, that’s forced selling. We track these unlocks and identify when **$500K+ USD in tokens are to hit** the market.

With this information, we find short candidates.

<figure><img src="/files/C2dU9XYZL5gzeHeLRdgn" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/6fRqr9RVzTH9rSXUqzFa" alt=""><figcaption></figcaption></figure>

## Strategy Design

### Inflation Coefficient (IC)

$$
IC = Unlock Amount / Market Cap
$$

* This formula tells us which token will most likely lose value.
* **Higher IC → higher pressure → better short candidate.**

### Weight Assignment

* Each token’s short weight is **based on its IC**.
* **Higher inflation → higher short weight.**
* The portfolio **constantly adjusts** as fresh data arrives.

### Rebalancing Logic

Every hour, the algorithm checks **current positions** and **target weights**:

* **If any gap > $20**
  * Rebalance

Every day, when **new capital enters**:

* **If deposit > $5 K**
  * Add proportionally to short positions, respecting current weights.

## Why Hyperliquid Vaults?

* Native way to run automated on-chain strategies **without managing bots or infra**.
* **Trust-minimized**, gasless for users.
* Executes on Hyperliquid’s order book for fast, efficient execution at scale.

<figure><img src="/files/1zUJibmUhJgxTgnedIBo" alt=""><figcaption></figcaption></figure>

## Deposit Here:

> #### <https://app.hyperliquid.xyz/vaults/0xb2246d6f3ddeeca74cfd29dc3cce05c1746fcd68>

***

Launch date - 9th June 25'