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

# BEAR

Review BEAR's leveraged short BTC, ETH, and SOL strategy, configured terms, liquidity, and material risks.

BEAR seeks gains when BTC, ETH, and SOL fall and is exposed to losses when they rise. It targets 2x short exposure to a roughly equal-weight basket of the three assets. A broad market rally can produce rapid losses.

{% hint style="warning" %}
Fees and strategy settings can change. Read current contract configuration before transacting. See [Fees and caps](/how-it-works/fees-and-caps.md).
{% endhint %}

## At a glance

The table summarizes the strategy and current fee terms.

| Property                               | Configured value                   |
| -------------------------------------- | ---------------------------------- |
| Direction                              | Short                              |
| Basket                                 | BTC 33.33%, ETH 33.33%, SOL 33.34% |
| Target exposure                        | 2x                                 |
| Collateral                             | USDC                               |
| EVM cash buffer                        | 15%                                |
| Routine rebalance interval             | 4 hours                            |
| Drift threshold                        | 10%                                |
| Management / deposit / withdrawal fees | 2% / 0.1% / 0.3%                   |

Deposit capacity depends on the configured total cap, transaction maxima, account limits, deposit-window usage, vault state and liquidity. Read these controls before signing.

## How the configured strategy works

The vault targets short perpetual-futures positions across BTC, ETH, and SOL, with weights of 33.33%, 33.33%, and 33.34%. It aims to keep 15% of its net asset value as USDC on HyperEVM for withdrawals and operations. The trading positions sit on HyperCore.

The raw target notional is net asset value times target leverage. The cash-buffer percentage is not multiplied into that target as an extra reduction. Execution costs and safety limits can adjust or constrain the positions actually placed.

## Why results can diverge from the basket

BEAR does not promise two times the inverse of the basket's return over a holding period. Basket weighting, funding, fees, fills, rebalance timing, the cash buffer, pending actions, and compounding can make realized performance differ from two times the inverse of the basket's simple change.

## Fees and execution costs

Fees reduce the value left for you. The annual management rate is 2%, the deposit fee is 0.1%, and the withdrawal fee is 0.3%.

The builder trading fee is 0.1% of contract-observed executed notional. It is separate from HyperCore exchange fees. Funding payments can also increase or reduce the value left for shareholders. Read [Fees and caps](/how-it-works/fees-and-caps.md) for how each charge works.

## Liquidity and redemptions

A displayed share value can exceed the amount you can withdraw now. A normal redemption pays from the vault's spendable USDC on HyperEVM and must pass the current CircuitBreaker limits.

Trading capital may need to return from HyperCore before more USDC is available. Pending maintenance, pauses, and emergency conditions can also block an exit. Read [Liquidity and redemptions](/safety/liquidity-and-redemptions.md).

## Material risks

BEAR can lose value quickly when its basket rises. The three assets can move together, so spreading exposure across them does not guarantee diversification. Funding costs, execution, withdrawal liquidity, software, and privileged contract changes also affect holders.

## Where the numbers come from

Vault contracts determine accounting and fees; CircuitBreaker determines transaction policy and limits. Read compatible contract configuration and capacity before transacting. See [Fees and caps](/how-it-works/fees-and-caps.md) and [Parameters and limits](/reference/parameters-and-limits.md).

## Next steps

Review the shared risks and current deposit process before transacting. Read [Risks before you deposit](/start-here/risks-before-you-deposit.md) and [Connect and deposit](/use-ensemble/connect-and-deposit.md).

Compare [iBEAR](/vaults/ibear.md) for the paired opposite-direction strategy. Each vault has independent settings and returns; the pair does not guarantee inverse performance.