What is HLP on Hyperliquid?
HLP, the Hyperliquidity Provider, is a vault run by the Hyperliquid protocol and fully owned by the community. It provides liquidity by making markets, takes over positions in backstop liquidations, supplies USDC in Earn and receives a portion of trading fees. Anyone can deposit and share its profit or loss. A deposit can be withdrawn four days after your most recent one.
- HLP is a vault run by the protocol, not by a trader. Hyperliquid describes it as fully community-owned.
- It provides liquidity on Hyperliquid’s order books, performs liquidations, supplies USDC in Earn and receives a portion of trading fees. Its result is the sum of all of that, and it can be negative.
- The liquidator vault, one of HLP’s strategies, takes over positions in backstop liquidations. The maintenance margin those positions lose stays with it as a buffer.
- A depositor owns a share of the vault: $1,000 into a vault holding $9,000 is 10% of it, and moves with the whole vault.
- Deposits are locked for four days: you can withdraw four days after your most recent deposit.
What HLP is
A vault on Hyperliquid is a pool of money traded as one account. Depositors own shares of it and share its profit or loss. User vaults are led by a trader. HLP, short for Hyperliquidity Provider, is a protocol vault: it is run by Hyperliquid itself, and Hyperliquid describes it as fully community-owned.
Anyone can deposit into HLP and share its result. Traders who never deposit still meet it, because it provides liquidity on the order books they trade on, takes over positions in backstop liquidations and receives part of the fees they pay.
What HLP does
HLP does four things. It provides liquidity to Hyperliquid by making markets, so there are orders on the book to trade against. It performs liquidations. It supplies USDC in Earn. And it receives a portion of the trading fees.
Each of those can make or lose money. A market maker can lose when prices run against the positions it is left holding, and backstop liquidations are profitable on average, Hyperliquid says, not every time. HLP’s result is the total, and it can be negative.
HLP and liquidations
When a position falls below two thirds of its maintenance margin and the order book has not absorbed it, the liquidator vault, one of HLP’s strategies, can take it over. On cross, the trader’s cross positions and cross margin all go to it; on isolated, only that position and its margin.
In a backstop liquidation the maintenance margin is not returned to the trader. It stays with the liquidator vault as a buffer, so that backstop liquidations are profitable on average, and the profit from liquidations goes to the community through HLP.
For a trader, the way to keep the maintenance margin is to close the position first, with a stop loss or by hand, before it reaches the backstop. How liquidation works walks through the whole process.
The four-day lock-up
Money deposited in HLP is locked for four days: you can withdraw four days after your most recent deposit. Deposit on a Monday at 08:00 and you can withdraw from Friday at 08:00. User vaults lock deposits for one day.
Because the clock runs from the most recent deposit, adding money moves the date. A top-up on the Thursday pushes the earliest withdrawal to the following Monday.
On Hyperliquid
Hyperliquid directs its trading fees to the community: to HLP, to the assistance fund and to deployers. Every vault, HLP included, has its own page on Hyperliquid where its performance can be tracked.
Hyperliquid notes that a vault’s past performance is no guarantee of future returns. HLP is no exception: its result comes from trading, and it can lose.
One deposit, four results
Example numbersA deposit of $1,000 into a vault holding $9,000, so it owns 10% of a $10,000 vault. Each row is a different result for the whole vault while you are in it, with nobody else depositing or withdrawing. Example numbers; HLP itself is far larger.
- Deposit
- $1,000
- Vault after the deposit
- $10,000
- Your share
- 10%
- Lock-up, in days
- 4
| Vault result | Vault total | Your share | Your result |
|---|---|---|---|
| −20% | $8,000 | $800 | −$200 |
| −5% | $9,500 | $950 | −$50 |
| +5% | $10,500 | $1,050 | +$50 |
| +20% | $12,000 | $1,200 | +$200 |
The share moves with the vault both ways: a 20% fall costs the same $200 that a 20% rise pays. On a user vault led by a trader, the leader’s profit share would also come off the gains when you withdraw.
Mistakes that cost traders money
- Treating HLP as a savings account.
Its result comes from market making, liquidations and fees. It can lose, and past results are no guarantee of future ones.
- Forgetting that a top-up moves the lock-up.
Withdrawal opens four days after your most recent deposit, so every new deposit pushes the date back.
- Expecting to withdraw at the value on screen.
Withdrawing can cost some slippage, as open positions are closed to pay you out.
- Letting a position reach the backstop.
In a backstop liquidation the maintenance margin is not returned. A stop loss or a manual close before that point keeps it.
- Assuming every vault works like HLP.
User vaults are led by traders, lock deposits for one day and pay the leader a share of the profit. HLP is the protocol’s own.
Try it in BuildTrade™
Before sending a paper order, read Est. liquidation on the ticket and place the stop where your idea is wrong, between the entry and that line. A position closed by its stop keeps its maintenance margin; one taken over in a backstop liquidation does not.
Fee · Liquidation · Margin · Slippage · Stop loss
Protocol vaults, Hyperliquid Docs (read October 20, 2026).
For vault depositors (legacy), Hyperliquid Docs (read October 20, 2026).
Liquidations, Hyperliquid Docs (read October 20, 2026).
Fees, Hyperliquid Docs (read October 20, 2026).
BuildTrade™ is independent of, and not endorsed by, Hyperliquid.