TradingCalcPolymarket Perps Hedge Ratio Calculator
SPOT HEDGE · PERP SHORT · REQUIRED MARGIN
Calculate the exact Polymarket Perps perpetual futures short position needed to hedge your spot holdings, including required margin and funding cost.
100% = full hedge · 50% = partial
For funding cost estimate, per payment
1h on Hyperliquid, dYdX, Kraken and Backpack; 8h on most others
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Hedging spot with a Polymarket Perps perp short
To hedge a spot holding on Polymarket Perps, you open a short perpetual position sized to your chosen hedge ratio. Opening that short costs Polymarket Perps's 0.04% taker fee (or 0.0125% maker fee with a limit order), which this calculator factors into the required margin.
Funding on Polymarket Perps settles every hour. If the rate is positive while you are short, you receive it: the hedge can be cash-flow positive on top of protecting your spot position from downside moves.
Polymarket Perps fee structure
Polymarket Perps charges maker fee 0.0125% and taker fee 0.04% on perpetual futures. Maximum available leverage is 50×. This calculator pre-fills these defaults so you get accurate results without needing to look up the fee schedule. If you are on a VIP tier with discounted fees, adjust the fee fields accordingly.
Maker orders (limit orders that add liquidity) cost less than taker orders (market orders that remove liquidity). On Polymarket Perps, using limit orders for both entry and exit can reduce your total fee cost significantly compared to market orders.
Related Polymarket Perps calculators
Compare Hedge Ratio across exchanges
Fees and leverage differ by exchange: see the same hedge ratio math with another exchange's defaults, or switch freely on the generic version.
Use via API or MCP
This Polymarket Perps hedge ratio math is also a deterministic API call: plug exact figures into trading bots, dashboards, or AI agents instead of estimating.
View API & MCP docs →What is a hedge ratio in crypto trading?
A hedge ratio is the proportion of your spot position you protect with a short perpetual futures contract. 100% neutralizes price risk; 50% gives partial protection while keeping some upside.
What is the cost of hedging with perpetual futures?
Hedging with a short perp has an ongoing funding cost. When funding is positive, short holders receive it, making the hedge cash-flow positive; when negative, you pay it.
What assumptions and edge cases does this calculator use?
Spot size (in dollars) must be above zero, the hedge ratio is 0 to 200 percent (default 100), leverage is 1 or more, and the funding rate is in percent per interval (default 0.01). An inverse contract also needs the entry price. Not covered: the gap between spot and the perp, rebalancing as prices move, margin calls and a funding rate that changes.
What are Polymarket Perps perpetual futures fees?
Polymarket Perps charges maker fee 0.0125% and taker fee 0.04%. Maximum leverage is 50×. This calculator uses these defaults but you can adjust them for your actual rate tier.
Is this calculator specific to Polymarket Perps?
Yes, the exchange is pre-selected to Polymarket Perps with live prices pulled from their API. You can switch to any other supported exchange using the instrument selector.