> 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/directional/third-eye-flagship.md).
# Third Eye Flagship
## Overview
Third Eye Flagship is a directional and market-neutral liquid fund strategy curated by Third Eye. The strategy seeks to generate alpha in both up and down markets through a combination of relative value, event-driven, and carry trades across spot, perpetuals, options, overlaid with selective directional positioning driven by macro, narrative, and fundamental theses.
The strategy is designed to thrive in high-volatility environments and is positioned as a higher-octane complement to lower-variance market-neutral vaults on Neutral Trade.
*Live on Neutral Trade: \[DATE TO BE CONFIRMED]*
*Past performance is not necessarily indicative of future results.*
## How it Works
Third Eye Flagship combines a directional and market-neutral trading, alongside a set of opportunistic trading sleeves.
#### Trading Styles
* **Relative value** — Long/short positioning in spot and perpetuals to express views on outperformers versus underperformers within and across asset baskets.
* **Directional overlay** — Selective directional positioning expressed through large-cap perpetuals and options, driven by macro, narrative, and fundamental theses.
* **Event-driven** — Trading altcoins around catalysts, narratives, and idiosyncratic events.
* **Carry** — Funding rate arbitrage, deployed to generate yield on excess cash with minimal risk.
#### Other Trading Strategies
* **Liquidity provision and quasi market-making** — trades servicing flow across the crypto ecosystem.
* **On-chain flow analysis** — tracking and trading notable wallet activity and protocol-level signals.
### Yield Sources
* Cross-asset relative value spreads within crypto.
* Directional alpha from discretionary macro and narrative-driven positioning.
* Funding rate, basis, and on-chain carry on idle balance sheet.
#### **Venues**
**Centralized:** Binance
## Risk Factors
**Discretionary risk** — A meaningful portion of returns is driven by discretionary positioning on macro, narrative, and event-driven theses. This introduces manager judgment risk.
**Concentration and event risk** — Event-driven and special situations trades can be concentrated in single names or single catalysts, with binary outcomes and limited liquidity around the event window.
**Counterparty and exchange risk** — Exposure to venue-level failure, insolvency, or operational disruption. Mitigations include: Off-exchange custody and settlement via Ceffu (MirrorX) for centralised exchange trading.
**Operational risk** — Strategy execution depends on the continuous availability of trading infrastructure, exchange APIs, and custody integrations.
**Leverage and liquidation risk** — Use of perpetuals and options introduces leverage. Sharp adverse moves can trigger forced liquidations or margin calls.
### Risk Management
The strategy operates within a defined risk framework:
* **Leverage limits** — Maximum 200% net leverage and 600% gross leverage relative to NAV.
* **Position sizing** — Limits applied to mid-cap and small-cap token exposures to manage concentration and liquidity.
* **Short constraints** — Short positions are prohibited on small-cap tokens, including synthetic short exposure expressed through TradFi instruments or option greeks.
## Custody & Security
Ceffu (MirrorX) is used for institutional off-exchange custody/settlement.
On-chain vault infrastructure, covering deposits, withdrawals, and onchain operations, operates under Neutral Strategy Vaults standard multi-party approval framework, independent of the centralised exchange custody arrangements. Full details: [Security](https://docs.neutral.trade/vault-infrastructure/security).
## Why Third Eye?
[Third Eye](https://www.third-eye.co/) is a discretionary and systematic liquid fund focused on directional and market-neutral strategies.
The team combines TradFi derivatives and credit experience with crypto-native trading and special situations experience. **Tian Zeng (CEO/CIO)** brings 15 years of TradFi experience trading macro and credit derivatives at Citigroup, Citadel Securities, and Deutsche Bank, and founded Phoenix Digital, a distressed and special situations fund active in FTX claims and event-driven crypto opportunities. **Federico Natali (Portfolio Manager / Head of Risk)** is a buy-side trader focused on derivatives, alternatives, and distressed opportunities across crypto markets, with prior experience at JPMorgan Exotics Trading and as founder of a Solana-based DeFi protocol.
Third Eye Flagship adds a directional and event-driven sleeve to a Neutral Trade strategy shelf that has been predominantly market-neutral. It is designed for allocators seeking concentrated alpha exposure alongside lower-variance core holdings.
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