Vault

Vaults on HyperCore are powerful tools enabling both individual traders and the community to participate in advanced trading strategies. They democratize access to market-making profits and liquidation mechanisms, previously reserved for privileged parties on traditional exchanges.

1. Protocol Vaults: Hyperliquidity Provider (HLP) 🌐

Overview

The Hyperliquidity Provider (HLP) vault is a community-owned protocol vault that plays a vital role in the ecosystem:

Key Roles

  • Engages in multiple market-making strategies

  • Performs liquidations (via a dedicated liquidation strategy).

  • Receives approximately 7% of platform fees (current estimate, see HyperDash and Fees page for details)

3-Core Strategies Used by HLP:

Community Participation

  • Anyone can deposit liquidity into the HLP vault to share in its profits.

  • No profit share fees for vault owners—benefits are fully distributed to depositors.

Lock-Up Period

  • Deposits have a 4-day lock-up period.

  • Withdrawals can only occur 4 days after the most recent deposit.

2. Protocol Vaults: Assistance Fund (AF) 🛡️

The Assistance Fund (AF) acts as a safety net for the Hyperliquid ecosystem, providing stability and covering potential losses during emergencies or platform errors. Examples include reimbursements for incorrect mark price calculations (see Incident page for historical cases).

Technical Details

  • Address: 0xfefefefefefefefefefefefefefefefefefefefe

  • Safeguarded by a validator quorum, ensuring strict conditions for usage

  • Currently receives approximately 93% of platform fees

  • Constantly purchases HYPE tokens using a TWAP (Time-Weighted Average Price) strategy, as it's the most liquid asset

  • Plans to diversify into other assets in the future

  • Sets limit orders near market price when balance > $10k USDC

  • Real-time tracking: AF Dashboard - Current balance and HYPE buyback activity

Historical Context

  • Before the AF, there was an insurance fund that served similar purposes

  • An identified insurance fund address initially funded the AF when it was created: 0x36715f6408819492c27C1a1538156af9a2BFe963 (controlled by Hyperliquid team)

  • This address can be confirmed as it was used to reimburse users during the ZRO incident

  • Trading fees now flow directly to 0xfe (AF address)

3. User Vaults 👥

User-created vaults allow individuals to run personalized trading strategies and share profits with depositors.

Vault Leaders:

  • Profit Share: Vault leaders receive 10% of the profits generated by their strategies.

  • Requirements to Create a Vault:

    • Deposit at least 100 USDC to initialize.

    • Maintain at least 5% ownership of the vault.

  • Vault leaders execute trades directly from the Trade page, applying their strategy to the vault's balance.

  • Closing a Vault:

    • Leaders must close all open positions before closing a vault.

    • Depositors receive their share of the vault’s assets upon closure.

Vault Depositors:

  • Earnings: Depositors earn a share of the vault’s profits proportional to their contribution.

  • Lock-Up Period: Deposits are locked for 1 day before withdrawal is allowed.

  • Performance Tracking:

    • View vault statistics, including APY, total deposits (TVL), and historical performance, on the vault’s page.

    • Track all vaults in real-time: Vaults Analyser

  • Withdrawals:

    • If margin requirements are met, withdrawals do not affect open positions.

    • Otherwise, a proportional amount of positions is closed to maintain stability.

Risk Considerations ⚠️

  • Trading is inherently risky, and past performance does not guarantee future returns.

  • Depositors should carefully review the performance history and strategy of a vault before committing funds.

Resources 📚

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