> For the complete documentation index, see [llms.txt](https://mortgagefi-docs.gitbook.io/mortgagefi-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mortgagefi-docs.gitbook.io/mortgagefi-documentation/strategies/cmp-hedge-against-the-bear-market.md).

# CMP: hedge against the bear market

[CMPs](/mortgagefi-documentation/how-mortgagefi-works/collateralised-mortgage-position-cmp.md) offer an innovate hedging strategy to protect the current USD value of your Bitcoin in the the case of a bear market whilst leaving you exposed to the upside of a continued bull market.

When you open a CMP you receive a Bitcoin mortgage to match your financing amount plus 98% of the current USD value of your Bitcoin in yield bearing [Earn](/mortgagefi-documentation/introduction/earn-product.md) tokens.\
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In the case of a bear market you can simply allow your mortgage to [default](/mortgagefi-documentation/getting-started/components/defaults.md) and retain your earn position which will continue to earn yield until you decide to convert back to stables in the soft-pegged uniswap v4 liquidity pool.\
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In the case of a continued bull market you can keep the mortgage from defaulting by making regular payments funded by the yield earned in your earn position. This means that the Bitcoin held in your mortgage can continue to benefit from the upside price appreciation the bull market delivers.\
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What happens if Bitcoin just keeps going up and I want to hedge at Bitcoins higher USD value?\
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In this scenario you can use the early repayment feature to release the Bitcoin in your mortgage, then open a new CMP at the new market value of Bitcoin, freezing it's value within the new Earn position you'll receive.


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