Short Loop: Route Short Exposure Into Any Supported Long Asset

Short Loop is the mode for increasing an existing position where you already have collateral on Zodial.

It is designed for users who want to add short exposure while routing the proceeds into a selected long asset. The short side is the main borrowed leg, while your existing portfolio provides the collateral context.

The long side can be an existing deposited asset or a new supported asset, as long as the selected pair, route, liquidity, and portfolio health all pass protocol checks.

How Short Loop works

1. Choose the long and short asset pair.
2. Select Short Loop.
3. Enter the short-side amount you want to increase.
4. Zodial checks your existing portfolio collateral, borrow capacity, route, and portfolio health.
5. If the position is safe, the planner prepares the loop transaction.

When to use Short Loop

Use Short Loop when:

• you already have deposits on Zodial,
• you want to increase an existing short or hedge position,
• the selected long and short pair is supported,
• your portfolio has enough borrow capacity, and
• the new position stays healthy after execution.

Long-side asset selection

Short Loop no longer limits the long-side selector to assets already deposited in your account.

You can select any long asset that is not blocked by same-asset account rules. The transaction still has to pass:

• pairwise risk support,
• deposit availability for the long asset,
• borrow availability for the short asset,
• route availability from short to long, and
• projected portfolio health.

Why Short Loop can be unavailable

Short Loop may be disabled or reduced when:

• you do not have existing deposits,
• the selected pair is not supported,
• there is not enough borrow capacity,
• the long-side deposit is blocked by protocol rules,
• the requested size would make the position unhealthy,
• market route data is missing, or
• protocol risk limits block the trade.

Zodial will not force the loop if the position cannot be executed safely.

Summary

Short Loop is for adding more short exposure to an existing Zodial portfolio while routing the proceeds into any supported long-side asset.