# Delta-Neutral Strategies

Pool creators can create pools enabling delta-neutral. A delta-neutral strategy is a type of investment strategy that involves offsetting long and short positions in a way that minimizes the overall delta or value change in the portfolio or position.

If a pool has ETH-USDC LP as collateral with ETH as a borrowable asset, users can set up delta-neutral position by depositing the ETH-USDC LP token (long position) and borrowing ETH to market sell (short position). When the price of ETH goes up, the LP token increases in value but ETH becomes more expensive to buy back in order to pay back the borrowed ETH.

Alternatively, when the price of ETH goes down, the LP token decreases in value but ETH becomes cheaper to buy back to pay back the loan.

If structured properly, the respective value increases and decreases of the respective long and short positions will be matched so that regardless of price movement, the overall position value will remain the same.

This allows users to earn trading fees and farming rewards without worrying about price changes in ETH. Thus, a delta neutral position.

Delta-neutral strategies are complex strategy and may not be suitable for all investors. It is always a good idea to consult with a financial advisor before making any significant investment decisions.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.ionic.money/partner-and-pool-operator-documents/ionic-for-partners/delta-neutral-strategies.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
