$0G Let's be clear: this is not a 'risk-free arbitrage' tutorial; this is a survival manual on 'how to lose slower and hold longer.' Following this won't guarantee profits but will prevent you from dying in the first prick.
✅ Step one: First check the funding rate; you cannot always open a short position.
This is the only hard indicator that can be pre-screened. $0G This kind of small coin often has erratic funding rates.
Practical actions:
1. Open the 0G/USDT perpetual contract page on Binance/HTX/Gate.
2. Find 'Funding Rate' / '资金费率' / '资金费'
3. Take a quick look at whether it's positive or negative, and by how much.
Opening conditions (must be met simultaneously):
· ✅ Funding rate ≥ 0.01% (8-hour settlement) — means the bulls are paying you, you can profit from shorting.
· ❌ The funding rate is negative — shorts are paying, you’re essentially paying protection fees every hour, absolutely do not open.
A giant whale pays 5.55 million U in funding fees in a month, just because they stubbornly hold on to negative rates. How much capital do you have? You can't afford it.
Check frequency: look at least once a day. If the rate turns negative and you don't run, you will be the next paying user.
✅ Step two: Calculate short position size — absolutely no 'equal value hedging.'
Many people come in saying, 'I locked 1,000 0G, so I’ll open a short for 1,000 0G.'
—— This is a death wish.
Investment gives you 163% annualized, the actual yield over 120 days is only:
163% ÷ 365 × 120 ≈ 53.6%
Your goal is: how much the coin price drops, the money earned from the short can 'convert back to U' the investment's coin-based earnings, not completely hedge against the coin price.
Formula (calculate as follows): short position size (dollar value) = investment principal (U) × 0.536.
For example:
You invested 10,000 U to buy 0G lock-up.
· Value of short position = 10,000 × 0.536 = 5,360 U.
· It's not opening a 10,000 U short, it's opening a 5,360 U short.
Why?
Your investment expects to earn 53.6% over 120 days (increase in coin quantity), the short position only needs to cover this increase. If you overbuy, and the coin price doesn't drop, you still lose — this is called over-hedging, purely giving money to the exchange.
✅ Step three: Margin — keep enough money to 'take a hit.'
Where do retail investors fail in hedging? They blow up short positions first, their investments are still locked and cannot be sold, resulting in losses on both sides.
Hard indicators (no discounts allowed):
· Margin ≥ 2 times the value of the short position.
· For small coins, low liquidity, and thin markets like 0G: recommend 3x.
Practical operation:
· Value of short position 5,360 U.
· Open position using 5x leverage, initial margin ≈ 1,072 U.
· But your account must have at least 2,144 ~ 3,216 U of available balance (not all in! This is the margin specifically for this short position).
Why?
ZAMA's 0G dropped from 6000U to 2400U, those who survived didn't predict accurately, but had enough margin, and the spike didn't trigger liquidation.
✅ Step four: Open positions in batches — don’t all-in at once.
The 0.596 you see is 'now.' After you open a position, the price may bounce back to 0.65 in the next second, resulting in an unrealized loss of 9%. At this point, your mindset may explode.
Correct posture (follow this):
· Break the target of 5,360 U short position into 3-4 batches.
· For example: first open 1,500 U, short after a 2% drop, then open 1,500 U again, after another 2% drop open 1,360 U.
· The first opening price ≠ average transaction price, accept it.
This is called dollar-cost hedging. You are not a god, you can’t catch the top or escape the bottom; averaging in is the only way to smooth out risks.
✅ Step five: Dynamic management — it’s not enough to just open positions.
Three things you must do every day (set alarms):
1. Check the funding rate (10 seconds).
· Three consecutive 8-hour settlements are negative → close the short position, accept the loss and fees.
· This is a stop loss, not a loss. You are buying insurance for your investment; if the premium is too high, you should cancel it.
2. Check if the margin is safe (20 seconds).
· Maintain margin ratio, estimate forced liquidation price.
· If the current price is within 15% of the forced liquidation price, either reduce the short position or add margin.
· Don’t wait for pop-up reminders, by then it’s already too late.
3. Monitor spike alerts (randomly, but have a concept).
· Small coins are most afraid of 4 AM and weekend afternoons, when liquidity is drained, a spike can lead to 10-15%.
· At such times, short positions may incur instant unrealized losses, and the system might directly force liquidate at market price.
· The only defense: have enough margin.
✅ Step six: Timing for closing positions — don’t be greedy for the last penny.
Two must-close signals (execute on any trigger):
1. Two weeks before the investment unlocks.
· The closer to unlocking, the stronger the expectation of the project team dumping, making it easy for short positions to be squeezed at low levels.
· Close short positions early, lock in short profits, sell the coins when the investment is unlocked.
2. 0G price approaching the 0.45~0.50 range.
· This is near the lower Bollinger band on the recent chart, support levels are likely to see a rebound.
· Close half of the short position here, keep bullets for the rebound if you still want to continue.
Don't try to catch the bottom; that's the graveyard of liquidation players.
I’ll give you a 【operation checklist】 to go through before every opening/adjusting of positions.
Steps Actions Standards ✅
1 Check funding rate ≥ 0.01% (positive) ☐
2 Calculate short position size = Investment principal × 0.536 ☐
3 Confirm margin ≥ short position value × 2 ☐
4 Open positions in batches, in 3-4 times ☐
5 Set price alerts, stay >20% away from the forced liquidation price ☐
6 Daily review of rates, continuous negatives lead to closing positions ☐
7 Unlock in the first 2 weeks, actively short ☐
⚠️ Last sentence: You are buying insurance, not a money printer.
You pay transaction fees + potential funding costs + opportunity cost of margin usage, what you get is not a 163% return, but rather 'don’t lose too badly when the coin price is halved.'
This process won’t make you rich but can prevent you from exiting at the first spike. In the 0G market, only those who survive are qualified to talk about returns.
Now, check the funding rate first. If it’s negative, there’s nothing to do today, save some tuition.
