> For the complete documentation index, see [llms.txt](https://academy.horizonprotocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://academy.horizonprotocol.com/english/horizon-genesis/staking-on-horizon-genesis/hedge-your-portfolio.md). # Hedge your Portfolio {% hint style="danger" %} This version of Horizon Academy has been deprecated! To find the latest version, please visit: [English V2](https://academy.horizonprotocol.com/) {% endhint %} In Horizon Protocol, your Debt Balance fluctuates as a percentage of the Global Debt Pool. To properly hedge the Global Debt Pool, it is recommended to hold zAssets that mirror its composition. ### What is Debt Hedging Debt hedging involves reducing the risk of price movements in your asset. In the scenario of your Horizon Protocol portfolio, because the value of the Global Debt Pool fluctuates due to the movement in asset prices, it can affect your debt. If the zAssets in the Global Debt Pool goes up relative to your zAssets (i.e. Global Debt Pool has 30% zBNB, 70% zUSD, and the price of zBNB has gone up, while you hold 100% zUSD), then your Debt Balance will increase, meaning that you will need extra zUSD to fill that difference. Alternatively, if the zAssets in the Global Debt Pool goes down relative to your zAssets (i.e. Global Debt Pool has 30% zBNB, 70% zUSD, and the price of zBNB has gone down, while you hold 100% zUSD), then your Debt Balance will decrease, meaning that you will have extra zUSD, more than the balance needed to pay back your debt. To offset this risk, the best way is to mimic the zAssets in the Global Debt Portfolio so that the price movement between the Global Debt Pool and your zAssets remain largely the same. ### How to Hedge your Debt in Horizon Protocol Tools are currently being developed to assist in hedging your debt on Horizon Protocol, including a feature showing a "Suggested Sample Hedge", which will provide recommendations on how to allocate your zAssets to closely mimic the Global Debt. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://academy.horizonprotocol.com/english/horizon-genesis/staking-on-horizon-genesis/hedge-your-portfolio.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.