Hypotheses
AVAX Linear-Payoff Replication: Spot-Hedged Hyperliquid Funding Carry
Derived by the Research Lead from Angeris, Chitra, Evans and Lorig's A primer on perpetuals: operationalize the linear-payoff replication argument as long AVAX spot on Binance and short an equal AVAX quantity on…
Hypothesis
Derived by the Research Lead from Angeris, Chitra, Evans and Lorig's A primer on perpetuals: operationalize the linear-payoff replication argument as long AVAX spot on Binance and short an equal AVAX quantity on Hyperliquid when historically observed funding offers sufficient compensation for trading costs. For phi(S)=S, Section 3's replication holds one underlying unit per contract unit and its idealized funding expression is zero. Actual exchange perpetuals have different contractual mechanics; their positive funding is a candidate carry opportunity, not an arbitrage guaranteed by the theorem. The authors specify no exchange strategy, entry threshold or holding period. The market, 4-hour decision interval, persistence filter, cost hurdle and exits below are Research Lead choices. Use signal-close market execution on these continuous venues, the registry's equivalent to next-bar-open execution. This is one applicable operationalization; it does not pretend that listed linear perpetuals reproduce the paper's logarithmic or power contracts.
Analysis
A primer on perpetuals
Backtest and paper results are hypothetical. Trading involves risk of loss.