> For the complete documentation index, see [llms.txt](https://docs.truenorth.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.truenorth.xyz/truenorth-desktop/truenorth-user-prompt-guide/prompt-formula/derivatives-analysis.md).

# Derivatives Analysis

**Purpose:**

Understand liquidation distribution, positioning, and squeeze setups

**Copy-Paste Prompts:**

**Liquidation Heatmap Analysis** `Show me the liquidation heatmap for $BTC — where are the major liquidation clusters and which direction is the market likely to hunt?`

**Derivatives Positioning Analysis** `Analyze $ETH derivatives: funding rates, open interest changes, long/short ratio, and what this tells us about positioning？`

**Smart Money Position Check** `Where is the smart money positioned on $SOL? Show me the Hyperliquid smart money data and what their positioning implies`

**Short Squeeze Setup Evaluation** `Is there a short squeeze setup on $BTC? Analyze the liquidation distribution and tell me if there's a squeeze trade opportunity`

**Stop Hunt Risk Assessment** `I'm holding a $BTC long. Analyze the current liquidation distribution and tell me where the stop hunts are likely to happen`

**Output Format:**

<figure><img src="/files/gLZtqGfrTn3NhnVIJXDA" alt=""><figcaption></figcaption></figure>

**What You'll Get:**

* Liquidation heatmap with key zones
* Squeeze / stop-hunt probability analysis
* Funding rate trends and interpretation
* Smart money positioning data
* Trade ideas based on positioning