DegenWings - Technical Specifications
How DegenWings Works
Below you can find the technical details about how DegenWings works.
We strongly recommend reading them carefully to fully understand the platform’s behavior and risk management logic.
If you have any doubts or questions, you can always contact our support team.
DegenWings does not open positions. It monitors the account to make sure it remains delta neutral and checks that funding rates do not fall below the threshold set by the user. It also provides stop loss and take profit management between the spot market and the USDT perpetual futures market of the same coin.
When performing funding rate arbitrage, the goal is to keep a funding-paying position open for as long as possible in order to minimize the impact of entry and exit fees.
DegenWings should be viewed as a tool designed to protect traders from the adverse events that may occur throughout the lifetime of this type of position.
DegenWings simultaneously monitors both the spot account and the USDT perpetual futures account.
DegenWings expects you to have purchased a coin on the spot market and to hold an equivalent short position on the USDT perpetual futures market.
DegenWings considers a position delta neutral when the size difference between spot and futures is lower than 1%.
Because of this behavior, DegenWings should be paused when opening new trades or moving assets between accounts.
DegenWings ignores USDT, USDC, and the coins used to pay trading fees, such as KCS on KuCoin and MNT on Bybit.
DegenWings ignores all assets with a value below $11. This prevents interference with any dust balances a user may have in their account and avoids placing orders that would be rejected for being below the exchange's minimum order size.
DegenWings uses the coin ticker to check delta neutrality. If spot and futures use different tickers, they will be treated as two different cryptocurrencies (for example SHIB and 1000SHIB).
If DegenWings needs to close part of a spot position to restore delta neutrality, it may cancel spot limit orders. It does not cancel all orders, only the ones necessary to free the required size. Orders are canceled starting from the lowest price.
Liquidations have additional costs. For this reason, it is recommended to place a stop loss before the liquidation price. See video.
DegenWings sends market orders. On low liquidity markets, it is recommended to place multiple exit orders before the liquidation price, allowing DegenWings to exit in smaller steps instead of with a single large order.
On KuCoin, DegenWings operates on Classic Accounts and does not support Unified Trading Accounts.
On Bybit, DegenWings operates on Unified Trading Accounts.
DegenWings works with both Cross Margin and Isolated Margin.
DegenWings manages the account as a whole, not individual trades. For this reason, it is recommended to use a dedicated subaccount only for delta neutral positions.
See How to create a subaccount on Bybit - How to create a subaccount on Kucoin
Depending on the subscription plan, there is a maximum number of monitored trades. If this limit is exceeded, the user will receive an email and the robot will automatically pause.
One subscription allows the user to run one robot. A robot can be deleted at any time, but deleting a robot does not cancel the subscription.
A user can have an unlimited number of subscriptions and robots, including different plans depending on their needs.
Subscriptions are purchased in USDT on the TRX network through our proprietary payment gateway.
Now that you understand how DegenWings works, watch the video “How to Find Opportunities and Open a Delta Neutral Position to Earn Funding Rates Passively”.