Strategy guide
Build a cash-and-carry basis trade with an AI agent
A cash-and-carry basis trade buys spot and sells a related perpetual future when the derivative trades above spot. That positive basis is commonly called contango; a derivative below spot is backwardation. The intended return comes from the price difference narrowing and may include funding received by the short. It is not risk-free: a perpetual has no fixed expiry, convergence is not guaranteed and the short can be liquidated.
A Fensory-connected assistant can read the matching spot and perpetual markets, calculate the percentage basis, inspect both order books and prepare equal-notional legs. The two orders are separate. This guide treats entry, reconciliation and exit as a sequence so the page does not imply an atomic spread order that the current tools do not provide.
Copy this prompt
Use the Fensory tools to evaluate a BTC cash-and-carry basis trade. Stay read-only first. Call get_spot_metadata, get_market, get_orderbook for the matching spot and perpetual markets, get_predicted_fundings, get_spot_account_state, get_account_state, get_open_orders and get_user_fees.
Identify the exact spot token and perpetual-futures contract. Report spot mid, perpetual mid, percentage basis as (perp minus spot) divided by spot, current and predicted funding, spread, visible depth, fees, balances, positions, open orders, market allow-list, access expiry and per-order cap. State that UBTC is a wrapped HyperCore spot token and that the perpetual short uses margin and can be liquidated.
Use my minimum entry basis of 0.50% and maximum $25 notional per leg. If the observed basis does not exceed the threshold after a conservative allowance for round-trip fees and visible spread, stop after the analysis. If it does, prepare a limit buy for spot and an equal-notional limit sell for the perpetual. Show the exact sizes, prices, estimated costs, liquidation risk and the rule for an unmatched fill.
Do not submit either leg in this request. If I later confirm the spot leg, place only it and read the actual fill. Recalculate the perpetual size from that fill and the new price, then ask for separate confirmation. Do not claim convergence or annualize the current basis or funding. Stop if the markets do not match, either quote is stale, liquidity is insufficient or any account control cannot be verified.Who this is for
This guide is for an eligible user who wants a transparent, supervised cash-and-carry workflow and is comfortable managing spot custody, perpetual-futures margin and two separate order states.
What it is not
It is not a promise that the basis will close, an automated profit loop or a fixed-income product. It does not use tokenized equities or app-only yield products, and it does not remove exposure when the legs or instruments do not actually match.
What you need
Two matching market references
The spot token and perpetual future must track the same underlying exposure. Confirm the token mapping and contract specification instead of matching tickers by eye.
A minimum basis after costs
Set a threshold that exceeds expected entry and exit fees, spread, slippage and a margin buffer. A positive displayed basis is not automatically large enough to trade.
An exit and leg-risk plan
Define the basis at which both legs should be closed and what happens if one order fills alone. Per-order controls cannot coordinate two independent venue actions.
What the agent does
01
Match the spot token and contract
The assistant verifies what each symbol represents. A cash-and-carry calculation is invalid when the spot token and derivative reference different assets or when a wrapped token is mistaken for native custody.
Tools: get_spot_metadata · get_market
02
Calculate an executable basis
Mid-price basis is a screen, not an execution price. The assistant uses both books to estimate where equal-notional legs could actually trade and reports funding separately from the basis.
Tools: get_orderbook · get_predicted_fundings
03
Check capacity and existing exposure
Balances, positions, resting orders, fees and controls determine whether the displayed opportunity fits the account. Existing exposure is included rather than hidden by a fresh pair calculation.
Tools: get_spot_account_state · get_account_state · get_open_orders · get_user_fees
04
Prepare the two legs
The assistant prepares equal-notional spot and perpetual orders but does not call a write tool during the analysis request. Each leg receives its own exact confirmation.
Tools: place_hl_spot_order · place_perps_order
05
Reconcile entry and exit records
Actual fills determine the matched size and entry basis. Funding and closing fills determine the realized result. A displayed basis at setup is not a track record.
Tools: get_order_status · get_fills · get_open_orders · get_funding_payments
Failure modes and limits
Convergence never arrives
A perpetual future has no expiry date that forces delivery against spot. The basis may remain wide or widen further, so the trade needs a time and loss boundary rather than an assumption of automatic convergence.
The short is liquidated
Directional exposure may be reduced across the pair while the perpetual leg still faces margin rules. A sharp move or insufficient collateral can liquidate the short while the spot token remains.
Execution consumes the basis
The screen can show a positive spread while the available bid and ask produce a smaller or negative executable spread. Fees and the eventual exit add another round of cost.
One leg remains unmatched
Sequential orders create a period of outright exposure. Repricing the second leg can reduce the mismatch, but it can also cross a worse book and erase the original basis.
Token mapping changes the risk
A wrapped spot token includes token and venue mechanics that the perpetual contract does not. Matching price references does not make custody and redemption paths identical.
Read the result in the terminal
- Entry basis
- Recalculate from actual filled prices and matched notional, not the quotes shown before confirmation. Record unmatched size separately.
- Margin and liquidation
- Track the perpetual entry, mark, margin mode, collateral and liquidation price while the pair remains open. The spot balance does not automatically protect the margin account.
- Realized result
- Combine both closing fills, all trading fees and the funding ledger. Report each component so a favorable price convergence is not confused with total profit.
Runs on
The client list comes from the same release record as the MCP page. Every verified client has its own setup guide.
Questions people ask
- What is the basis in a cash-and-carry trade?
- It is the price difference between the derivative and related spot exposure, usually expressed as a percentage of the spot price. A derivative above spot is contango; below spot is backwardation.
- Does a perpetual-futures basis have to converge?
- No. A perpetual future has no expiry or delivery date. Funding encourages alignment, but the basis can persist or widen.
- Is cash-and-carry risk-free?
- No. It carries execution, leg, basis, funding, margin, liquidation, token and venue risk, plus fees on entry and exit.
- Can Fensory submit the two legs together?
- No atomic spread order is claimed. The current workflow uses separate spot and perpetual-futures actions with separate status and fill checks.
- Does roll yield apply to perpetual futures?
- Roll yield describes the result of replacing an expiring futures contract with a later one. Perpetual futures do not expire, so funding and basis are the relevant mechanics here.
- How is this different from the funding-rate strategy?
- The basis guide begins with the price difference between spot and perpetual futures. The funding guide begins with the expected recurring payment. A real position must evaluate both.