I know the concept of hodling a synthetic contract is not the same as holding real btc in a cold wallet, but I’m wondering if anyone has deployed this strategy?

Basically to invest semi long term instead of trading, while getting the benefits of leverage.

I’ve actually only researched perps recently with the success of Hyperliquid and Lighter. Previously I never wanted to play with leverage due to centralization risk and liquidation risk. But I think we are closer to the bottom in regards to BTC, and I don’t plan on using excess leverage so I’d like to amplify some gains in this next cycle.

Strategy overview. It looks like current funding rates are about 12% APY. Does this mean in this scenario, it would make no sense to use LESS than 1.12x leverage if I plan to hold for more than a year? Basically, at 1.12x I get exposed to liquidation risk, more downside risk, and zero upside risk.

So doing 1.2x, for example, is a good amount to give me upside on top of funding rate charge, and liquidation protection. 100/1.2 is
83.3, meaning unless BTC drops another 83%, I am pretty safe.

Is this the right way to think about using leverage? I’m assuming the biggest risk here is funding rates going up higher than my leverage amount, 20% for example, and then me having to adjust the leverage up to make the upside make sense (while getting exposed to higher liquidation risk).

Probably stupid questions, but as a long time cold storage hodler, I’d like to look for some other strategies using leverage, play the 4 year cycle next time, and risk TPing for once instead of holding through bear cycles.