// 02 Hedging
Lock in compute revenue — or compute cost.
Operators, buyers and lenders all carry GPU price risk. Index-based hedges let each side fix the number they care about.
// Scenarios
Each side of the chain has a different risk.
Operators
Risk: Rent falls
Short the rental index or buy a collar to protect lease revenue.
AI application companies
Risk: Compute cost rises
Go long the index or fix a forward price for future capacity.
Lenders
Risk: Collateral value falls
Pair GPU credit with an index hedge so a rent drop doesn’t become a default.
// Tools
Three instruments, one reference price.
| Instrument | Counterparty | Settlement | Minimum size | Access |
|---|---|---|---|---|
| Index perpetual | On-chain order book | Cash, stablecoin | Small | Region check, wallet screening |
| Forward | Licensed counterparty (OTC) | Cash | By arrangement | Professional investors |
| Custom hedge | Licensed counterparty | Per term sheet | By arrangement | Professional investors, KYC |
Perpetual contracts are leveraged and can be liquidated. Trade only what you can afford to lose.
// Calculator
What a ±20% or ±40% rent move does to revenue.
Unhedged monthly revenueHedged monthly revenue
Illustrative only. Scenario assumptions, not forecasts.
// FAQ
Questions
Do I need to trade on-chain?
No. Forwards and custom hedges are arranged with licensed counterparties off-chain.
What does the hedge reference?
Teraline Asian GPU indices, so the hedge tracks local prices rather than US cloud prices.
Who can use custom hedges?
Professional investors that pass the counterparty’s onboarding checks.