What HLP does
HLP is a protocol vault involved in market making and liquidation activities. Depositors receive the strategy’s gains or losses rather than a fixed yield. Returns can depend on spreads, inventory, trader flow and stressed liquidation events.
The official protocol-vault documentation describes a four-day lock. The four-day liquidity constraint belongs in any return comparison, especially during volatile periods.
Legacy user vaults differ from HLP
Hyperliquid’s user-vault documentation is now labeled legacy. Legacy user vaults follow a leader’s trading strategy. They historically used a one-day withdrawal lock with a 10% leader share of positive profits.
Do not mix historical user-vault mechanics with current HLP terms. Verify the exact vault, current interface status, lock and fee before depositing.
APY extrapolates past returns
A short profitable window can produce an impressive annualized percentage. The annualized percentage assumes the same return path continues and usually hides drawdown shape, capacity and regime change.
Review cumulative PnL, peak-to-trough loss, strategy concentration and withdrawal timing. Past performance does not predict future results.
Vault due-diligence checklist
Referral discounts do not apply to vault activity under the official referral rules. Keep vault economics separate from the trading-fee calculator.
Recheck the live vault page immediately before depositing: strategy state, withdrawal availability and displayed performance can change after this review. Save the terms you relied on so a later APY or lock change does not rewrite the original decision.
- Identify HLP, protocol vault or legacy user vault.
- Read the current lock and fee terms.
- Measure APY and drawdown.
- Understand what positions or liquidation flows create returns.
- Limit allocation to a loss you can tolerate through the lock.