Hyperliquid vaults and HLP explained

A vault on Hyperliquid is a pooled account: depositors put in USDC, one leader or strategy trades it, and everyone shares the profit and loss in proportion to what they put in. The biggest is HLP, the Hyperliquidity Provider, a community-owned vault run by the protocol that makes markets, performs liquidations and earns part of the trading fees. Anyone can also deposit into vaults run by individual traders. Figures below are from Hyperliquid’s documentation and API on Nov 9, 2026.

HLP and user vaults compared

How HLP makes and loses money

HLP quotes on many markets, so it earns the spread when the market is calm and is paid a share of trading fees. It also takes over positions that are liquidated, which pays when it can close them at a better price and costs it when the market keeps moving against them. That is why HLP has losing days and losing stretches: between Oct 29 and Nov 12, 2025, its trading lost about $4.7 million. Its value also moves with deposits and withdrawals: it fell from $180.9 million a month ago to $149.3 million on Nov 9, 2026, mostly through withdrawals, while its trading made about $2.1 million over the same month. All-time, it is $140.7 million ahead. Depositors share both sides.

How user vaults work

• Creating one: pick a name and description, which can’t be changed, deposit at least 100 USDC and pay a 10,000 USDC creation fee that goes to the protocol like trading fees.
• Depositing: you own a share of the vault. Example from the docs: put 100 USDC into a 900 USDC vault and you own 10%; if the vault grows to 2,000 USDC, you withdraw 200 USDC less a 10 USDC profit share, so 190 USDC.
• Withdrawing: if the vault lacks free margin, open orders are cancelled and, if needed, positions are closed 20% at a time until your withdrawal can be paid, so a withdrawal can cost slippage.
• Closing: the leader closes all positions and every depositor gets their share.

The newer vaults on the HyperEVM

Hyperliquid now treats the original vaults as legacy. Builders can create tokenized vaults on the HyperEVM that follow standards such as ERC-4626, trade on HyperCore through CoreWriter and reach spot and HIP-3 markets as well. Their fees, lock-ups and risks are set by each builder, so read the vault’s own terms.

Risks

• Losses are shared. A vault’s drawdown is your drawdown; check its maximum drawdown, not only its return (max drawdown explained).
• Lock-ups. You cannot leave HLP for 4 days after a deposit, or a user vault for 1 day, whatever the market does.
• Leader risk. A user vault depends on one trader’s discipline; the 5% minimum stake aligns them, but not completely.
• Liquidation risk at HLP. Taking over liquidated positions in a fast market can lose money quickly.

Vaults versus following a trader with Senpi

A vault pools your money with other depositors under one leader. Senpi works the other way round: your money stays in your own strategy wallet, and the agent mirrors a trader you choose, after it researches their record, sized 0.1x to 4x, with an exit attached, or runs a strategy you described (strategy types and the sub-wallet model, mirror strategy settings). You can stop or withdraw without a lock-up, and you pay no profit share.

Frequently asked questions