Hyperliquid HLP Model Explained:
How the Vault Works
Market making, depositor PnL, withdrawal lockup, and the tail risks hidden behind a live APR snapshot.
Check HLP before depositing
Use live VaultVision data for the current snapshot; this article explains the model and its risks.
HLP is Hyperliquid's protocol vault. This guide separates mechanics documented by Hyperliquid from live VaultVision model outputs.
The official protocol-vault page says HLP runs multiple market-making strategies, performs liquidations, supplies USDC in Earn, accrues a portion of trading fees, and shares resulting PnL with community depositors. Returns can be positive or negative. HLP has a four-day lockup after the most recent deposit; current TVL, performance, positions, risk, and deposit state belong on the live HLP page.
TL;DR
- Check the live HLP vault page for current TVL, positions, risk, performance, and deposit state.
- Documented functions include multiple market-making strategies, liquidations, and supplying USDC in Earn. HLP also accrues a portion of trading fees.
- Deposits carry a four-day lockup measured from the most recent deposit.
- Community depositors share HLP's PnL. The official page does not promise positive returns or a fixed yield.
- Market-liquidity, liquidation, oracle, and validator-intervention risks still matter.
What HLP actually is
HLP stands for Hyperliquidity Provider. Unlike a legacy user vault managed by an individual leader, HLP is a protocol vault.
Depositors share the resulting PnL, including losses. VaultVision's risk score and entry label are derived screening outputs, not native Hyperliquid fields and not deposit instructions.
Documented HLP functions
Hyperliquid documents four functions without assigning a fixed return to any one of them:
| Documented function | What the official page establishes | What not to infer |
|---|---|---|
| Market-making strategies | HLP provides liquidity through multiple strategies. | No fixed spread income or guaranteed positive return. |
| Liquidations | HLP performs liquidations. | No fixed liquidation premium or guaranteed profit per event. |
| USDC in Earn | HLP supplies USDC in Earn. | No fixed contribution to HLP return. |
| Trading fees | HLP accrues a portion of trading fees. | The page does not specify a permanent contribution rate. |
These functions can contribute to gains or losses. A static mechanics page cannot establish which function drove a current return; use live positions and performance data for the current state.
Where to check current HLP data
Current TVL, APR, 30-day and 90-day return, drawdown, risk, positions, and deposit state do not belong in a static article. They change with the vault.
Open the live HLP vault page for the current snapshot, then use the HLP comparison hub if you need a side-by-side view.
The 4-day lockup, in practice
Hyperliquid's current protocol-vault documentation states that HLP can be withdrawn four days after the most recent deposit. A new deposit resets that clock.
Before depositing, confirm the current product flow, keep the lockup separate from market and strategy risk, and do not treat the vault as cash-equivalent liquidity.
Historical risk and the JELLY intervention
HLP's documented functions expose it to market-liquidity, liquidation, and oracle conditions. Hyperliquid's risk documentation also says HLP is exempt from some open-interest and resting-order restrictions so it can continue quoting liquidity.
On March 26, 2025, Hyperliquid publicly stated that validators voted to delist JELLY perps after suspicious market activity and that the Hyper Foundation would make non-flagged users whole. The delisting documentation explains the protocol mechanism.
That episode is evidence of liquidity and oracle stress plus validator intervention, but public reports mix unrealized exposure, settlement, reimbursements, and final vault PnL. VaultVision therefore does not label a single reported number as HLP's realized loss without a first-party accounting source.
Questions to answer before using HLP
Use current data to answer four questions: can you tolerate the documented four-day lockup; what drawdown appears in the selected window; what positions and concentration are visible now; and how does HLP compare with leader vaults under the same risk and data-quality rules?
VaultVision's score and entry label are screening outputs, not deposit recommendations.
HLP vs individual leader vaults
HLP and legacy user vaults expose different strategy and manager risks.
| HLP | Leader vault | |
|---|---|---|
| Operator | Protocol | Individual |
| Capacity | Changes with current TVL and deposit state | Changes with leader ownership and current vault state |
| Documented function | Multiple market-making strategies, liquidations, USDC in Earn, portion of trading fees | Strategy selected by the leader |
| Depositor lockup | Four days after the most recent deposit | One day for legacy user vaults |
| Profit share | Community-shared PnL; no separate leader share listed on the protocol-vault page | 10% leader profit share in current legacy documentation |
Compare current positions, drawdown, TVL, deposit state, and data quality rather than assuming one structure is universally better.
Protocol references: HLP protocol vault and legacy leader vaults.
See HLP live, with full risk breakdown
TVL, rolling drawdown, risk components, and where HLP sits relative to the rest of the Hyperliquid vault universe.
Open live HLP vault page Compare HLP with leader vaultsRelated reading
- How VaultVision's Risk Score is calculated
- How to choose a Hyperliquid vault: 5-factor framework
- Live Hyperliquid vault rankings