{"id":15381,"date":"2026-09-09T18:10:41","date_gmt":"2026-09-09T22:10:41","guid":{"rendered":"https:\/\/finestel.com\/blog\/?p=15381"},"modified":"2026-09-09T18:10:41","modified_gmt":"2026-09-09T22:10:41","slug":"hyperliquid-vaults-explained","status":"publish","type":"post","link":"https:\/\/finestel.com\/blog\/hyperliquid-vaults-explained\/","title":{"rendered":"Hyperliquid Vaults Explained: How HLP and User Vaults Work"},"content":{"rendered":"

A Hyperliquid vault allows users to pool their funds and receive a proportional share of the vault\u2019s profits and losses. There are different types of vaults on Hyperliquid: HLP, the protocol\u2019s official vault, is managed by Hyperliquid, while user vaults are operated by individual traders or automated strategies.<\/span><\/p>\n

Many traders think of Hyperliquid vaults as a copy trading tool, where they only need to deposit crypto and gain passive exposure to a trading strategy. But it is important to note that Hyperliquid vaults are not without risks, and profits are not guaranteed. Before allocating capital, I recommend carefully assessing key risks, including lock-up periods, leverage, and potential drawdowns.\u00a0<\/span><\/p>\n

What Is a Hyperliquid Vault?<\/span><\/h2>\n

Put simply, a Hyperliquid vault pools users\u2019 funds and uses them for different trading or liquidity strategies. When you deposit assets into a vault, you receive a share based on your contribution relative to its total equity. The vault then deploys this capital across Hyperliquid\u2019s markets according to rules defined by its creator.<\/span><\/p>\n

Unlike a vault, a<\/span> Hyperliquid trading bot<\/span><\/a> executes your own strategy while keeping funds in your personal account. It can automate signals, copy trades across multiple accounts, and give you more control over position sizing and exits, without a vault lock-up period.<\/span><\/p>\n

Types of Hyperliquid Vaults<\/span><\/h2>\n

\"Types<\/p>\n

HyperCore includes protocol vaults such as HLP and user-created vaults. With the introduction of HyperEVM, builders can now create customizable vaults and define their own accounting, trading, and withdrawal rules.\u00a0<\/span><\/p>\n

1. Protocol Vaults: HLP<\/span><\/h3>\n

HLP, or Hyperliquidity Provider, is a community-owned protocol vault that allocates user capital across several market-making strategies, participates in liquidations, supplies a portion of its USDC to Hyperliquid Earn, and accrues a share of the platform\u2019s trading fees.\u00a0<\/span><\/p>\n

\"hyperliquidity<\/a><\/p>\n

One of the key differences between HLP and user-created vaults is that it does not charge the 10% leader profit share. Instead, community members can provide liquidity to the vault and participate proportionally in its profits and losses.<\/span><\/p>\n

2. User-Created Vaults<\/span><\/h3>\n

User-created vaults are managed by individual traders or automated trading systems. By depositing capital, you can gain exposure to the vault\u2019s strategy and share proportionally in both its profits and losses. In return for managing the vault, the vault leader receives a 10% share of the profits generated for depositors.<\/span><\/p>\n

\"hyperliquid<\/a><\/p>\n

Legacy user-created vaults on HyperCore can only trade validator-operated perpetual markets. They cannot trade spot assets or HIP-3 perpetual markets.<\/span><\/p>\n

3. Custom HyperEVM Vaults<\/span><\/h3>\n

Custom HyperEVM vaults can support a wide range of programmable strategies, including:<\/span><\/p>\n