Risk disclosure
Hedging reduces one risk. It adds others.
PerpPayroll exists to make a payroll bill less sensitive to the price of the asset funding it. That is the only thing it does. It does not guarantee that payroll will be covered, it cannot create money, and the instrument it uses carries risks that a spot treasury does not have.
Protection is never guaranteed.
A hedge can be liquidated, a venue can go down, funding can turn against you and a fill can come in worse than the mark. Any of those can leave a payroll short even when the app showed it as fully covered an hour earlier. Treat every figure here as an estimate from live data, not a commitment.
What hedging actually does
A short perpetual gains roughly what the hedged notional of your treasury loses when the price falls — and loses roughly what it gains when the price rises. That is the entire trade: you are exchanging upside for predictability, in proportion to your coverage level. At 80% coverage you keep 20% of both the downside and the upside. Nothing about it produces income, and the protection costs fees and, when funding is negative, funding.
Risks you are taking on
Liquidation risk
A short perpetual is liquidated when the price rises far enough against it. That is the opposite direction from the one you are protecting against, but it is the direction that destroys the hedge — and it takes the margin with it. PerpPayroll defaults to 2× leverage and shows an estimated liquidation price and buffer on every position, but the venue's own risk engine is the only authority on whether and when a position is liquidated.
Funding risk
Perpetual funding is paid continuously between longs and shorts and the rate changes every hour. When funding is positive a short is paid to hold the hedge; when it flips negative the hedge starts costing money, and it can stay negative for weeks. Every cost figure in this app projects the rate observed at that moment across the holding period. It is an estimate, not a quote.
Basis and tracking risk
A perpetual tracks its underlying through an oracle and an index, not by holding it. Mark price can diverge from spot, and the asset in your treasury may not be exactly the asset the contract references — hedging BTC exposure with a BTC-PERP leaves wrapped-token, bridge and custody differences unhedged.
Execution and liquidity risk
Preflight walks the live order book and checks whether it can absorb your size inside the slippage budget (default 0.50%). Books move between that check and your order. In a fast market the depth that passed preflight may not be there when you execute, and the fill can be materially worse than the mark.
Venue risk
The hedge lives at a trading venue. Exchange insolvency, withdrawal suspension, downtime during volatility, socialised losses, auto-deleveraging and API outages are all real and none of them are hedged by the position itself. Margin posted at a venue is exposed to that venue.
Oracle risk
Mark price, funding and liquidation are all computed from a venue oracle. A stale, manipulated or briefly wrong oracle can liquidate a healthy position or misprice the coverage you are relying on.
Operational risk
PerpPayroll holds no venue keys and cannot place, modify or close an order. Every position you record here is one you opened yourself. If the recorded hedge and your real position drift apart — a partial fill, a manual close, a liquidation — the coverage shown here will be wrong until you correct it.
Regulatory and tax risk
Perpetual futures are not available to everyone everywhere, and hedging gains and losses are taxable events in most jurisdictions regardless of whether they offset a treasury loss. PerpPayroll does not give legal, tax or investment advice. Check both before you use it.
Every assumption behind the numbers
These are the formulas the app uses. They are simplifications, and knowing where they are wrong matters more than the figures themselves.
- Hedge sizing
- Notional equals payroll owed × coverage target, capped at the value of the treasury earmarked for that payroll. Coverage above 100% of what you hold would leave the organization net short, which is speculation, so the app does not offer it.
- Hedge P&L
- Computed as (entry price − mark price) × quantity. Linear, one-to-one with the price move on the hedged notional. It excludes slippage and assumes the position is held to payday.
- Fees
- Estimated at 0.045% taker per side. The close leg is shown up front even though it has not been paid, so settlement is not a surprise. Your actual venue tier may differ.
- Funding
- Signed, and projected at the venue's current hourly rate across the hours the hedge is held. Positive means the short is being paid, which is why the net protection cost can legitimately show as a credit. Realised funding will differ.
- Liquidation price
- Estimated as entry × (1 + 1/leverage − maintenance margin rate), using the venue's published maintenance margin. It excludes accrued fees and funding, both of which erode the buffer over time.
- Scenarios
- The ladder applies instantaneous moves of +20%, +10%, 0%, -10%, -20%, -30% to the mark. It is a sensitivity check, not a forecast, and it assigns no probability to any of them.
- Market data
- Marks, funding rates, maintenance margins and order book depth are read live from the venue's public API. When a read fails the app shows the failure and excludes that asset from totals rather than substituting a guess.
What PerpPayroll is not
- Not a custodian. It never holds your assets. Wallet connection is read-only and there is no signing path anywhere in the application.
- Not a broker. It holds no venue API keys and cannot place, modify or close an order on your behalf. You execute at the venue yourself.
- Not an adviser. It does not forecast price, recommend a direction, suggest leverage beyond a conservative cap, or tell you whether to hedge. Those are treasury decisions.
- Not a yield product. Positive funding is a side effect of the hedge, not a strategy. Sizing a position to earn funding is speculation, and this app will not help you do it.
Nothing on this site is financial, legal, tax or investment advice. Perpetual futures can lose more than the margin posted against them and are not suitable for every organization. Consult your own advisers before using leverage against treasury assets you need to meet an obligation.