One-way Positions
By default, all users have one-way positions enabled by default. This means a user can only have an open position in one direction either long or short at any given time. All one-way positions have the position mode set toBOTH which is the only valid value.
Hedge mode Positions
Hotstuff additionally supports opening perp positions in a hedge-mode. When hedge-mode is enabled, user’s can simultaneously have both long and short legs open in a single perpetual market. This can improves capital efficiency in terms of net margin requirements for advanced users. In Hedge-mode, a user’s long leg position requires a position mode set toLONG and similarly SHORT for their short leg. Note that under hedge-mode operation, long leg can only have positive direction i.e. a position’s long leg cannot actually be short and vice versa.
Currently, isolated-only perpetual markets do not support hedge mode positions. Further, switching to hedge-mode is a rate-limited action on the L1 and requires an account to have no open positions or orders.
Currently, hedge-mode is only enabled for protocol vaults such as HLV. Hedge mode will gradually be made available to all users trading on Hotstuff.