> ## Documentation Index
> Fetch the complete documentation index at: https://docs.paystream.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# How Paystream works?

> How Paystream works: delta-neutral strategies and safety.

Paystream focuses on **delta-neutral funding rate strategies** that let you earn from perpetual funding rates without betting on price. Here's how it works at a high level.

## Strategies

We run **delta-neutral funding strategies** so you can earn from perpetual funding rates without betting on price. You're not going long or short directionally; you're hedged so that price moves cancel out across your legs and you keep the funding spread.

We support two structures: **perp-to-perp** (two perpetual legs on different venues, earning the funding rate *difference*) and **spot-to-perp** (long spot and short perp to collect funding). We use Hyperliquid, Drift, Pacifica, and Lighter. Before we enter any trade we run pre-entry safety gates and a stress simulation; once in a position we use margin tiers, ADL handling, and a kill switch so one bad move doesn't blow up the book. For the full picture, see [Strategies](/strategies/overview).

**Vaults** give you the same yield without the manual work. You deposit USDC and receive **share tokens** that track your stake. The protocol deploys your capital into delta-neutral positions and rebalances automatically as funding rates shift across venues — opening, closing, and moving legs to chase the best yield. Your share price rises as the vault earns; when you withdraw, you burn shares and get back USDC plus your accrued yield. No positions to manage, no execution to worry about. See [Vault](/strategies/vault) for deposits, withdrawals, and risks.