2 mins to understand the SK Hynix Arbitrage 👇🏻 • SK Hynix trades in Korea and as a US ADR • 1 ADR = 1/10 of a Korean share, so it should cost 1/10 of the Korean price • It doesn't, ADR trades ~30% too expensive now • Why? Converting Korean shares into ADRs is blocked, so nothing forces convergence • Conversion opens 29 July, and traders expect the gap to shrink The Trade 📈 • Long the cheap Korean side, short the expensive US side, profit when the gap closes on 29 July • Everyone and their mom is doing this, so funding on the Korean perp on @HyperliquidX is super high, going as high as 180-240% APR • This funding eats into your profit every hour How Boros Helps 🛠️ • For arbitrageurs, LONG YU to fix your long-leg funding cost at the Implied APR. • For cash and carry traders, SHORT YU to fix your funding rate earning Some Risks ⚠️ • The gap may not close if Korea limits conversion • It likely won't hit zero. TSMC's ADR premium never has • Funding rates can drop/fluctuate, especially during closing hours (Refer to @tradexyz docs on "Discovery Bound")