> For the complete documentation index, see [llms.txt](https://nadobro.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nadobro.gitbook.io/docs/strategies/delta-neutral.md).

# Delta Neutral

Funding rate farming with minimized directional exposure.

The **Delta Neutral (DN)** strategy holds offsetting long and short exposure to harvest **funding** while keeping price-direction PnL close to zero. NadoBro automates the entry, monitors the legs, and now performs **automatic maintenance closes** when the position drifts outside its target band.

#### When to use it

* You expect **funding to remain one-sided** (either persistently positive or persistently negative) and want to harvest it without taking directional risk.
* You want **inventory parking** between strategies without exiting Nado entirely.

#### How it works

1. **Configure the pair** and total notional from the Delta Neutral strategy card.
2. NadoBro opens an offsetting pair of positions sized so net delta ≈ 0.
3. The bot accrues funding each hour for as long as the position is open and the funding sign favors your delta.
4. **DN maintenance auto-close** monitors the position continuously. If the realized delta drifts outside its band (e.g., one leg fills materially before the other, or one side gets liquidated), the maintenance routine **closes the position automatically** rather than leaving you with naked directional exposure.

#### DN maintenance auto-close

The maintenance loop runs every cycle and watches for:

* **Delta drift** beyond the configured band.
* **One-sided fills** that leave you net-directional.
* **Margin pressure** on either leg.
* **Funding flip** — if the sign you were harvesting reverses, the position is unwound rather than held into a now-negative carry.

When any condition fires, NadoBro closes the position via reduce-only IOC and posts a Telegram notification with the trigger, realized PnL, and accrued funding.


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