# 9. Hedging

When a band is opened, the protocol initiates a hedging sequence by placing orders on the perps exchange (*Hyperliquid*) to manage pool risk.

The hedging logic differs depending on whether the trader’s underlying position is long or short, and whether the band was sold or bought.

For the full hedging trigger tables covering both long and short positions, see [Annexure B: Hedging Logic](/annexure-b-hedging-logic.md)


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