Vaults · Live on the testnet

Vaults

Vaults let anyone deposit USDC into a trading strategy and own a share of what it earns and loses. The protocol's liquidity vaults make markets, take over liquidations and earn a share of trading fees. User vaults are run by individual traders. Both are open on the testnet now with mock USDC; real deposits open at mainnet alpha, after the external audit.

Vaults in the app Risk limits

Vault types

Testnet

FLP liquidity vaults

Functor Liquidity Provider (FLP) vaults are owned by their depositors, like Hyperliquid's HLP, but split by risk. FLP · Backstop receives 30% of every trading fee, takes over accounts the book cannot liquidate and unwinds them. FLP · Market-making quotes on the order book. A loss in one never touches the other.

Testnet

User vaults

Any trader can open a vault for others to deposit into, and trade it. The leader must keep at least 5% of it. When you withdraw, the leader takes 10% of your own profit above what you put in, and nothing on a loss. You can withdraw your share any time after a one-day lock-up, and everyone is paid out if the leader closes the vault.

Risk limits

Hyperliquid's HLP vault lost money in several market manipulation incidents in 2025 and 2026. As the backstop liquidator, a liquidity vault takes on positions that attackers can set up in advance. FLP vaults follow these rules, which are fixed before the first deposit.

Each vault has a limit on how much of any one market it can take over.
Open interest caps are set according to each market's depth, and open interest can only grow at a limited rate.
Traders cannot withdraw margin that a large profitable position needs.
Thin markets have price bands, so prices cannot spike within one block.
Each vault publishes its positions and limits.

Terms

These are the rules the testnet chain enforces today (Hyperliquid's, unless marked). Mainnet values are confirmed in the audit.

	FLP liquidity vaults	User vaults
Managed by	The protocol	The vault leader, who alone can trade it (checked by the chain)
Source of returns	Market making, liquidations, 30% of trading fees	The leader's trading
Leader's minimum share	Not applicable	5% at all times
Profit share	None	10% of each depositor's profit above their cost basis, at withdrawal; nothing on a loss
Lock-up after deposit	4 days	1 day
Opening a vault	Not applicable	10,000 USDC fee on mainnet, to the protocol like a trading fee (100 mock USDC on the testnet); first deposit at least 100 USDC
Closing	Not applicable	Only when the vault holds no positions; every depositor is paid out at once
Share price	Vault equity divided by shares outstanding, computed onchain, with rounding always against the person acting

Real-money vaults open at mainnet alpha, targeted for Q2 2027. Vaults can lose money: a user vault can be liquidated like any account, and its depositors share the loss. Past returns do not guarantee future returns.