Is the protection capital a SaveMyCrypto fee?

No. Protection capital is the collateral you fund to maintain the hedge and its operating buffer. It remains part of the protection system, not a fee paid to SaveMyCrypto.

What is the actual cost of protection?

The main cost is the potential stop-loss cost when the protection's protective stop executes, and any funding paid while the hedge is held. The exact amount depends on the asset, the protection level, and market conditions.

No automated protection is free — there can be stop-loss costs and funding costs. What you fund as protection capital is your capital used as the operating buffer, not a fixed purchase price.

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What does crypto hedging cost?

Protecting crypto from the downside means funding a hedge. Here's what that actually costs, in plain language.

The capital you fund as protection capital

To open protection, you fund a dedicated protection capital amount. This is the collateral that maintains the hedge and its operating buffer. It is not a SaveMyCrypto fee — it remains part of the protection system and is used to keep the hedge healthy as the market moves.

The potential stop-loss cost

When the protection's protective stop executes, the hedge is closed at a price determined by the protection rules. This can produce a realized loss — that loss is the cost of having been protected. In exchange, your downside was limited to around your chosen protection level rather than the full market fall.

Funding

While a hedge is held, funding may be paid or received depending on market conditions and the product contract. Funding is a normal part of holding a hedge and can be positive or negative over time. The exact sign and amount depend on the market.

What hedging is NOT

Protection is not a purchase, not free, and not guaranteed to avoid all loss. It limits downside exposure but does not remove risk. The real costs are the stop-loss cost when protection executes and any funding while the hedge is held.

Want the full picture? Start with what crypto hedging is, readhow crypto portfolio protection works, or compare it withhedging vs selling.