Hyperliquid vaults: user vaults, leaders and lockups
A Hyperliquid vault pools depositors' USDC and lets a leader trade it. Under the HyperCore vault rules the leader takes 10% of profits, must keep at least 5% of the vault, and depositors face a 1-day lockup. Losses are shared just like profits.
Protocol vaults vs user vaults
Hyperliquid has two kinds of vault on HyperCore:
- Protocol vaults, mainly HLP, which charge no fees and no profit share.
- User vaults, created and run by an individual trader or an automated strategy (the "leader"). Depositors share in the vault's profit and loss.
The docs now label these HyperCore vaults as legacy. A newer approach lets builders create vaults as smart contracts on HyperEVM, which can trade on HyperCore through CoreWriter, follow standards such as EIP-4626 and access spot and HIP-3 markets that legacy vaults do not support. Existing HyperCore user vaults still work.
The rules for HyperCore user vaults
| Rule | Value (per docs) |
|---|---|
| Leader profit share | 10% of profits |
| Minimum leader ownership | At least 5% of the vault at all times |
| Depositor lockup | 1 day |
| Minimum leader deposit at creation | 100 USDC |
| Creation fee | Listed as a 10k USDC gas fee, paid to the protocol |
| Name and description | Cannot be changed after creation |
| Closing | All positions must be closed first; depositors then receive their share |
The 5% rule means the leader always has their own money at risk alongside yours. They cannot withdraw if that would take their share below 5%.
How deposits and withdrawals work
Open a vault's page in the app, enter an amount and confirm. Your share is a slice of the vault's equity. When you withdraw, part of the vault's open positions may be closed to pay you, so the docs warn there may be some slippage. Vault volume counts separately from your own account, and referral discounts do not apply to vaults.
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Open HyperliquidHow to judge a vault
- Look at the whole history, not the APR. A high APR over a few weeks often means one lucky, highly leveraged bet.
- Check maximum drawdown. How far did the vault fall from its peak, and how long did recovery take?
- Look at current positions and leverage. The vault page shows open positions. Large, concentrated, high-leverage positions are a warning sign.
- Check the leader's own stake. More than the 5% minimum signals stronger alignment.
- Check vault size and age. Very small or very new vaults have little track record.
- Understand the strategy. If the description is vague and the trades look random, treat it as gambling.
Risks of vaults
- You can lose most or all of your deposit. A leader who gets liquidated takes the depositors down too.
- No recourse: leaders are pseudonymous. There is no regulator or compensation scheme if a leader trades recklessly.
- Profit share asymmetry: the leader shares in gains but losses come out of everyone's equity in proportion to their share.
- Smart-contract risk for HyperEVM vaults, which run on third-party code with their own bugs and admin keys.
Read copy trading with vaults for a practical approach to sizing and diversifying vault deposits.
Frequently asked questions
How much do Hyperliquid vault leaders earn?
HyperCore user vault leaders receive 10% of the vault's profits, on top of returns on their own stake, which must be at least 5% of the vault.
What is the lockup on Hyperliquid user vaults?
1 day for user vaults. The protocol vault HLP has a 4-day lockup.
Can I create my own vault?
Yes, the docs say anyone can create a HyperCore vault, with a minimum 100 USDC deposit and a creation gas fee. Builders can also create vaults as contracts on HyperEVM.