Hedging is prohibited on Tradeify Perps, and the rule is strict. You must not hold opposing positions in the same instrument, or in two or more instruments in the same Product Group, at the same time. That applies within one account, across your own accounts and against accounts you hold anywhere else. It's a breach whatever your intent, whatever the size and however briefly the positions overlap. Hedging is a fair-play violation, with automatic and permanent consequences.
What counts as hedging
Opposing positions are long and short positions held at the same time. They count:
whatever their size, quantity, notional value, leverage, order type or holding period;
whether they were opened together or at different times; and
whether or not they actually offset risk or made a profit or a loss.
You hedge if you hold opposing positions in:
the same instrument; or
two or more instruments in the same Product Group.
Your intent, purpose and strategy don't matter. If the positions exist at the same time, it's a breach.
Within one account
Example. You're long BTC and short ETH in the same account. Both are in the Crypto Product Group, so this is hedging.
Across your accounts and other firms
The rule covers every account you own, control, trade, fund or direct, alone or with anyone else:
all your Tradeify Perps accounts, including evaluations, funded accounts and your Live account, to the extent the Live Trader Agreement applies the rule; and
any account elsewhere, including with other prop firms, brokers, exchanges and funding programs, and with other Tradeify brands such as Tradeify Futures and Tradeify FX.
Example. You're long BTC on one Tradeify Perps account and short BTC on another. That's hedging.
Example. You're long BTC on a Tradeify Perps account and short BTC on an exchange account. That's hedging.
We may ask for information, documents, statements or trading records for accounts you hold elsewhere. If we tell you that positions may breach this rule, you must close them promptly.
Product Groups
Each asset class is a separate Product Group. At launch there are four: Indices, Commodities, Crypto and Stocks. "Markets and leverage" lists the instruments in each.
Opposing positions in different Product Groups aren't hedging under this rule. Example: long SP500 and short Gold are in different Product Groups. But using correlated instruments or accounts specifically to get around our risk controls is still prohibited.
Copy trading and hedging
You can copy trades between your own accounts with the platform's copy-trading feature, but copying must never create opposing positions.
Example. Your master account opens a BTC long. One of your copy accounts already holds an ETH short. The copied BTC long would create opposing positions in the Crypto Product Group, so it's hedging. Close or align positions in your copy accounts before you copy. See "Copying trades between your own accounts".
Consequences
A hedging breach:
puts every account involved in violation status;
forfeits any profit made during the violation, whether or not you've requested it as a payout; and
is a fair-play violation, so all your Tradeify Perps accounts are closed, unpaid profit and Rewards are forfeited, your Live Fund is forfeited and you're permanently barred from Tradeify Perps.
A ban from Tradeify Perps may also extend to other Tradeify brands, case by case.