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Hyperliquid HLP vault explained
HLP (Hyperliquidity Provider) is a community-owned vault that makes markets and handles liquidations on Hyperliquid. Depositors share its profits and losses.
What HLP does
- Runs market-making strategies across Hyperliquid's markets.
- Takes over positions in backstop liquidations.
- Earns a share of trading fees.
Key facts
| Ownership | Community-owned |
| Lockup | 4 days from your most recent deposit |
| Returns | Variable; can be negative |
Source: Hyperliquid protocol vault docs.
The risks
- Losses happen. In March 2025, a very large ETH position liquidated into HLP caused a multi-million-dollar loss.
- Manipulation risk. In the JELLY incident, an attacker tried to push a losing position onto HLP. Validators delisted the market; HLP ended with a small surplus.
- Lockup. You can't withdraw for 4 days after each deposit, even if markets turn.
Who it suits
HLP is not a savings account. It may suit people who understand market-making risk and can leave funds locked. Never deposit money you can't afford to lose.
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What is the HLP lockup period?
4 days from your most recent deposit.
Can HLP lose money?
Yes. It took a multi-million-dollar loss in March 2025.
Is HLP risk-free yield?
No. Depositors share in both profits and losses.
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