Hedge your inventory.
Earn the funding.
Perpetuals on silver, gold, copper, and oil. Open a short equal to your physical book and the spot move stops affecting your P&L. Funding settles every 8 hours: in today's bullish regime longs pay shorts, so a defensive hedge runs as a positive carry on inventory you already hold.
Bullish funding. While you stay short, longs pay you the funding rate every 8 hours.
A basis trade on your own inventory
You are already long the commodity. Inventory is your delta. A short perp of equal notional brings you to flat. The funding stream becomes your carry.
Short pays you while you stay flat
Inventory rallies, the perp loses, the two cancel. The funding rate is positive and longs pay shorts every eight hours. You collect that funding for the entire time the hedge is on. In a strong run, this turns a defensive hedge into a yield-generating position.
Hedge offsets the inventory loss
Spot drops, your inventory takes the hit, and the perp short gains by the same amount. You stay flat through the drawdown. Funding may flip and the short position pays instead of receives, but the net P&L on the basis is still close to zero. Close the perp when you sell the inventory and you exit clean.
Physical stock,
turned into a yield position.
The hedge keeps you delta-neutral. The funding rate, while it stays positive, pays you to hold it. Net result: the inventory you'd be sitting on anyway accrues a small carry in your account every 8 hours, without selling the physical or taking directional risk.
The mechanic is symmetric. In bull regimes funding stays positive (most of the past twelve months for silver, gold, and platinum) and the short side collects. In bear regimes funding flips and the short pays the long. Net effect: you pay for the hedge when you actually need it (the market is falling and your inventory is losing value), and you don't pay when you don't (the market is rising). Either way the hedge offsets your physical P&L; only the funding sign changes.
- Inventory
- 10,000 oz silver
- Notional
- $300,000
- Hedge
- Short XAG-USD perp, equal size
- Funding earned
- ~$25 per 8h
- ~$75 per day
- ~$6,900 per quarter
Built for the way physical books actually move
No expiry, no roll
Hold the hedge for a day, a week, or a quarter. No quarterly roll cost, no rolling between contracts to stay near the front month. Adjust size as inventory turns.
Exit any time
Close the position the moment you sell physical. No settlement waiting period, no penalty, no liquidity wall at the close. The hedge tracks the book size in real time.
24 / 7 markets
Perps trade through weekends, holidays, and overnight. When the LBMA close leaves you naked, the perp is still on. Hedge weekend gap risk that traditional futures cannot cover.
Funding as carry
Funding settles every 8 hours. Sign reflects which side is paying. In persistent contango (where most metals sit today), shorts collect, so the hedge produces a small positive carry instead of a cost.
Crypto or fiat, your call
Margin from USDC if you already hold stables. Or fund directly from a USD, HKD, SGD, CHF, or AED balance and Nxos handles the conversion. Same position, same risk, same funding. Pick the rail per trade.
Any size, your unit
Hedge a few thousand or several million. No minimum order, no contract multiples. Size in troy ounces, kilos, or barrels. The interface speaks the same language as your physical book.
Hyperliquid runs the order book. We do the rest.
Your perp position sits on Hyperliquid. They run the matching engine, they custody the open interest, they hold the actual book. As more venues list commodity perpetuals at institutional size, we'll add them in.
What Nxos handles: the regulated account, the funding (fiat or stables, from your existing balance), the compliance, and the P&L reporting. The Hyperliquid relationship sits behind that. You never have to interact with it directly.
Hedge what you actually carry
Coverage expands as venue liquidity matures. Custom markets on request for established physical traders.
Margin, hedge, manage
Post margin in fiat or crypto
Move USDC if you hold stables, or USD, HKD, SGD, CHF, or AED from your fiat side. Either way the funds land in the perp margin account. Conversion is handled inline.
Open the hedge
Short the perp at notional matching your inventory. Position is live in seconds. Delta-neutral immediately.
Collect or pay funding
Every 8 hours funding settles to your account in the currency of your choice (USD, HKD, SGD, CHF, AED, or USDC). Shorts earn in bullish funding, pay in bearish. Running rate visible in the dashboard.
Close on inventory exit
Sell physical, close the perp, withdraw margin to your fiat balance. P&L on the basis is the funding accrued plus the slippage at entry and exit. All settled back to USD.
Hedging is not free, but it is cheap
The hedge holds because perp price and spot are kept close by arbitrage. The gap (the basis) is normally a few basis points either way and reconverges within hours, even through stressed sessions. Day-to-day mark-to-market on the perp leg moves with that gap, but it does not break the directional offset.
Margin must be topped up or the position is liquidated. At 3x effective leverage on a hedge, a 33% adverse move is needed to trigger liquidation; physical hedges typically run at 2x to 3x and are auto-funded from the operating account. Funding can flip negative when sentiment reverses, which means paying carry instead of collecting it. The directional offset is unchanged either way.
The product on this page is calibrated to inventory hedging, not speculative directional trades on the same instrument.
Hedge your inventory with commodity perps
Available to existing Nxos accounts. Talk to our desk to walk through fit, sizing, and execution for your book. New customers set up the account first.