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. That liquidity constraint belongs in any return comparison, especially during volatile periods.
Legacy user vaults are not HLP
Hyperliquid’s user-vault documentation is now labeled legacy. These vaults follow a leader’s trading strategy and 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 is an extrapolation, not a promise
A short profitable window can produce an impressive annualized percentage. That number 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.
- Identify HLP, protocol vault or legacy user vault.
- Read the current lock and fee terms.
- Measure drawdown, not only APY.
- Understand what positions or liquidation flows create returns.
- Limit allocation to a loss you can tolerate through the lock.