Skip to main content
Maestro’s mining credit programs integrate a dynamic, delta-neutral hedge — designed to protect downside exposure. The hedge is run as a derivatives program: explicit delta targets, position sizing matched to each loan book, and rebalancing as prices move.

​
Hedge construction

The hedge is assembled from standard institutional instruments:
  • Options collars that cap downside on the underlying exposure.
  • Perpetual futures that offset Bitcoin price movement on the loan book.
  • Hashrate derivatives that hedge mining-specific risk.
Each position is sized and rebalanced to the strategy it protects.

​
How the hedge works

A typical mining loan behaves like a call option on Bitcoin: the strike is the miner’s energy cost plus operating cost, denominated in BTC, and the mining operation itself is the underlying — the ASIC-as-Call-Option framework.
  • When Bitcoin rises, mining profitability rises with it, and the strategy delivers its base yield.
  • When Bitcoin falls, the delta-neutral hedge is designed to offset the loss on the loan book, rather than relying on a margin call or collateral liquidation.
This makes the design counter-cyclical: a BTC drawdown is exactly when hedge proceeds activate. In bear cycles, hedge P&L is designed to support repayment; in all other cycles, mining is structured to deliver the base yield.
All yield figures are indicative BTC APY ranges, not guarantees. Actual returns vary by program, market conditions, and counterparty. Figures are net of fees and BTC-denominated. Past performance is not indicative of future results.
A backtest of the 2021–2022 Bitcoin bear market — among the deepest drawdowns in Bitcoin’s history — illustrates the intended behavior: a hedged loan book would have recovered principal in full, while comparable USD-financed miners faced margin calls and, in some cases, bankruptcy. It is a historical stress test of the mechanism’s design, not a forward-looking projection or a guarantee.

​
Layered with collateral

The hedge is the first line; collateral sits behind it. Each program is structured to be 150% asset-backed and 100% delta-neutral hedged, with 10–20% of principal held as pledged BTC reserves. Pledged BTC, hashrate, and assets are held as first-lien security. Should recovery ever be needed, it is structured to move senior to junior through a defined waterfall:
  1. Pledged BTC & accounts receivable — liquid, BTC-denominated reserves.
  2. Hedge profits — proceeds from the delta-neutral hedge as Bitcoin declines.
  3. ASICs — the mining hardware.
  4. Power contracts — contracted energy supply.
  5. Hosting contracts — colocation and operations agreements.
  6. Energy infrastructure — substations, transformers, and related build-out.
  7. Other real assets — remaining pledged assets.

​
What the hedge does not do

Dynamic hedging manages downside risk — it does not remove it. The hedge provides a level of downside protection, not a guaranteed principal-protected strategy.
Black swan events outside the modeled scenarios can still impair principal — no hedge covers every path. Hedging also reduces yield, typically 1–3% versus an unhedged rate, the deliberate cost of managing downside. Borrower default, custodial failure, and extreme market dislocation remain possible. The hedge describes the design intent of the instrument, not a guarantee.

​
Program rigor

Before any program launches, Maestro runs simulations across scenarios and actively monitors live programs:

Monte Carlo

Pre-launch simulations test miner resilience across a wide range of market conditions.

Historical backtests

Stress-tested through real markets (including the 2022 collapse) before capital is accepted.

Daily monitoring

Performance and risk thresholds are monitored daily.
See the hedge structure running live in the SmashFi × Sazmining case study, and the vault it protects in Mezzamine Credit.
Maestro Institutional is operated by Go Maestro Inc. and is intended for accredited investors and qualified allocators only. Access is permissioned and subject to eligibility verification, with KYC required where a vault’s terms specify; it is not directed at retail investors. Bitcoin and Bitcoin-denominated yield products carry material market, counterparty, regulatory, and technology risks. Yield figures are net of fees and BTC-denominated; past performance is not indicative of future results. Custody options vary by vault and strategy; depending on the vault, investors deposit directly into vault contracts or through a qualified custodian (Anchorage Digital).