# How to Hedge Chainlink 24/7

> Reduce LINK price exposure with a matching short perpetual while keeping spot or staked Chainlink. Account for the staking cooldown, variable funding, and separate collateral.

- Canonical: https://www.liquid.trade/learn/how-to-hedge-chainlink-24-7
- Published: 2026-09-18
- Category: Strategy
- Tags: Chainlink, LINK, Hedging, Perpetuals, 24/7 Trading

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**The direct answer:** Short a [LINK perpetual on Liquid](https://app.liquid.trade/trade/LINK) against LINK you already hold. For a 50% hedge, short half your LINK amount; for a full price hedge, short the same amount. The short can offset a decline while you keep your coins or wait for a staking withdrawal.

If LINK rises, the short loses money and reduces your upside. Keep collateral available separately from the LINK you are hedging.

## How do I size a partial or full LINK hedge?

Use **LINK held × hedge percentage** for the short quantity. Multiply by the current price to get its dollar notional—the position size, rather than the collateral deposit.

Suppose you hold **1,000 LINK** at a hypothetical **$20 per LINK**. Your holding is worth $20,000. A 50% hedge shorts 500 LINK, initially $10,000 of notional. A full hedge shorts 1,000 LINK.

| LINK price move | Holding PnL | 500 LINK short PnL | Combined PnL |
| --- | --- | --- | --- |
| Falls 15% to $17 | −$3,000 | +$1,500 | −$1,500 |
| Rises 15% to $23 | +$3,000 | −$1,500 | +$1,500 |

A full 1,000 LINK short would gain or lose $3,000 in the opposite direction, approximately offsetting the holding. These hypothetical figures assume identical price moves and that the short remains open. They exclude fees, funding, slippage, staking rewards, and any difference between reference and execution prices.

The full hedge gives up the modeled upside too.

## Can I hedge LINK during the staking cooldown?

Yes. You can keep LINK staked and use a separately funded short to reduce price exposure through the withdrawal period.

[Chainlink's v0.2 staking documentation](https://chain.link/economics/staking) describes a 28-day cooldown followed by a seven-day claim window. Unclaimed stake returns to the staking state after that window. Confirm your withdrawal dates when planning the hedge.

The hedge may stay open for weeks, so total funding can matter more than the opening fee. Put the claim window and hedge review on the same calendar.

Review the short as staking rewards increase your LINK balance. Only count funds as trading collateral once they are available in the trading account.

## Why can a hedged LINK position still be liquidated?

Because a LINK rally creates losses in the trading account. Gains on LINK held elsewhere do not automatically replenish that account's margin.

<Callout variant="warn" title="Fund the hedge before the cooldown starts">
Leave enough collateral for a LINK rally and funding payments. Staked LINK may be unavailable when you need it, and a liquidated short stops offsetting later declines.
</Callout>

More collateral gives the same short more room for a rally. See [liquidation](/learn/what-is-liquidation) and [margin modes](/learn/cross-margin-vs-isolated-margin) for how the account handles losses.

## What risks and costs remain after hedging LINK?

The perp and spot LINK can trade at different prices, creating basis risk. Check the spread and available depth for your order size, especially before a large weekend adjustment.

Shorts normally receive positive funding and pay negative funding. The rate can reverse, so budget for payments, entry and exit fees, and slippage over the whole holding period. [Learn how funding works](/learn/what-are-funding-rates).

The hedge does not cover lost keys, staking or custodian failures, or wrapper depegs. It also targets LINK: other tokens in your portfolio can move differently.

Liquid's LINK market is designed for 24/7 trading. Access varies by location, and outages or thin liquidity can still interrupt execution.

## How do I hedge Chainlink on Liquid?

1. Add up the LINK you want to hedge, including staked coins.
2. Choose a hedge percentage and a review date tied to your holding plan or claim window.
3. Open [LINK on Liquid](https://app.liquid.trade/trade/LINK) and select short.
4. Enter the short amount, set collateral, and check the price, fees, funding, and liquidation level.
5. Set alerts for margin and the staking claim window. A stop can close the hedge at a different price from its trigger.
6. Reduce the short when you sell LINK, or close it when you want full price exposure again. Keeping the short after selling all your LINK leaves you betting on a decline.

[Explore Chainlink →](/markets/chainlink) · [Review crypto shorting mechanics →](/learn/how-to-short-crypto)