How a fund works

Follower walkthrough

Sign in and keep HYPE in your wallet on HyperEVM for network fees. Open a fund and choose Buy. Your buy minimum is the shares you require to receive; if the fund cannot meet it, the buy is refused and you get no shares.

After the buy is accepted, find your shares in Portfolio. To leave, choose Sell, enter shares and check the minimum total shown. Payments go to your wallet. Find the sale receipt in Portfolio again to see payments and their transactions. The sale cannot be canceled. Payment can wait; if the fund closes, recovery may pay less.

If Portfolio offers Finish my sale, sending it asks the fund to take the next available step: sell positions if needed, move sale cash to HyperEVM, or pay you. Each step needs a wallet transaction and you pay its network fee; the fund uses its own HYPE for transfers. Your sale request also adds at least 0.002 HYPE to the fund's gas buffer; it can be more when network gas costs more.

If nothing is ready, leave the sale open and check Portfolio again later. Payments may come in parts; shares not yet paid remain exposed to the fund. On your receipt, you can lower the remaining minimum or change the recipient after you review and confirm the new value. You cannot raise the minimum again. Each change needs a wallet transaction. There is no promised wait time, and some whole closes wait until a scheduled rebalance when the fund already has its own sale outstanding.

Create and buy

Creating a fund sends your starting deposit toward the fund's Hyperliquid account and gives you its first shares. On the all-markets factory, cash may move to Core in parts; an amount above the per-block transfer limit stays on HyperEVM for a later call. The fund places its first trades only after Hyperliquid has activated its account, in a later block.

Choose a name and thesis, then choose distinct markets, a long or short side for each, and positive weights that add to 100%. Choose daily or hourly rebalancing, amounts paid to holders on buy and sell and target gross leverage. Gross leverage counts longs and shorts together: at 2×, a $1 fund targets $2 of positions, not 2× on each side. A half-long, half-short fund can have $1 long and $1 short per $1 of fund value: 2× gross even when the two sides partly offset.

The contract floor for the starting deposit is more than 1.001 USDC, but every market needs orders of at least the venue minimum, so the real minimum is higher: Create computes it for your markets before you launch. Hyperliquid takes $1 from the deposit to activate the fund account. Send at least 0.01 HYPE to its gas buffer, plus your own wallet's network fee. You get spendable shares for the deposit, while 0.001 shares stay locked.

Submit the launch in Create and finish any setup steps shown there. The fund opens to buyers after setup completes. You cannot change its markets, sides, weights, leverage, schedule or amounts paid to holders on buy and sell afterward. Creators hold ordinary shares and gain or lose with other holders. Amounts paid to holders on buys and sells stay in the fund through share value. Trading costs can exceed the benefit; there is no cash distribution or promised return. There's no separate creator payment.

An accepted buy takes USDC and mints shares in its HyperEVM transaction.

The fund's cash movements and new position fills can complete later, leaving exposure below its goal meanwhile.

Example: a sale paid in two parts

Illustrative assumptions: 100 shares, a $1.00 gross share value, 1% paid to holders on sell and a $90.00 minimum; sold-position and cash checks allow 50 shares to settle in each of two different blocks.

First payment: 50 × $1.00 × 0.99 = $49.50; 50 shares burn and the other 50 remain exposed.

The remaining minimum becomes $90.00 − $49.50 = $40.50.

If the later gross share value is $0.90, the next payment is 50 × $0.90 × 0.99 = $44.55, above the $40.50 remaining minimum; total paid is $49.50 + $44.55 = $94.05.

Less cash, unsold positions or a payment below the remaining minimum can leave shares unpaid. Times are typical, not promised.

Sell and settle

A sale escrows your shares, which stay exposed to the fund until ordinary payments burn them. In wind-down, the remaining shares become claim units for recovered cash instead.

The fund pays the portion it can settle from HyperEVM cash at that block's share price after the holders' share.

Payments can arrive in parts, and an unmet minimum can keep the rest waiting.

There is no promised exit time.

Example: $100 through one rebalance

Illustrative assumptions: an accepted $100.00 buy into one 3× long position at asset price $100.00, share price $1.00, and completed fills; fees, amounts paid to holders on buy and sell, funding, reserves, rounding and locked shares are excluded so operating capital equals equity.

$100.00 ÷ $1.00 = 100 shares, with $100.00 × 3 = $300.00 of exposure, or 3 asset units.

At asset price $110.00, the gain is 3 × ($110.00 − $100.00) = $30.00, leaving $130.00 equity and $330.00 exposure.

The rebalance target is $130.00 × 3 = $390.00, so completed trades add $60.00 of exposure and hold 390 ÷ 110 asset units.

If the asset returns to $100.00, equity is 130 − (390 ÷ 110) × 10 = $94.55, a loss of $5.45 even though the asset returned to its start.

Real targets deduct liabilities and use the fund's operating-capital calculation; delayed or partial trades can leave a different exposure and result.

Rebalancing and leverage

A rebalance chooses how much the fund should hold next.

A rebalance is due hourly or daily on a schedule anchored to the fund's launch time.

Someone must send a transaction to run a due rebalance.

A rebalance updates position goals from operating capital, target leverage, and position weights.

Separate trade calls try to move positions toward those goals as cash, margin, and order limits allow.

Current leverage can drift between rebalances as prices and positions change.

The early cut-back

A cut-back tries to reduce exposure before the next scheduled rebalance.

For a fund with only shared margin, the price trigger is half the shared allocation distance calculated at launch and stored for every pool. The allocation calculation balances the pools' margin needs and liquidation distances at target leverage. The trigger is recalculated at each scheduled rebalance.

When every market in a fund uses separate margin, the trigger is half of one divided by target leverage: 25% at 2×.

At target exposure before costs, one divided by target leverage is the move against every position at once that would take the fund's whole value. A fund with both kinds uses the smaller of half that move and the shared-margin trigger, worked out after the separate-margin positions' own margin is set aside.

A leg with a readable mark and an open position, pending buy, or authorized buy-back makes a cut-back due when an adverse move from the price recorded at its last rebalance or cut-back reaches the stored trigger distance.

A shared-margin pool with a readable account below the larger of its used margin and one tenth of its position value also makes a cut-back due. A pool of separate-margin positions doesn't.

A separate-margin position near half of its own margin cushion, with a one-day funding allowance, is sold whole and a roll tries to buy it back, capped by its current target and available cash. The timing depends on the keeper, readable accounts and the order book; that roll touches only that position, while a cut-back lowers the whole fund.

The rebalance call records lower goals and safety targets for later orders.

A separate trade call submits reduce-only immediate-or-cancel limit orders through CoreWriter.

These orders can fill partly or fail to fill, so a cut-back is not guaranteed protection against liquidation or further losses.

Buys pause while the trigger is armed or a leg has a buy embargo.

A buy embargo blocks increases in a position. On the all-markets factory, a cut-back's embargo can end when a later observation sees its safety target reached, no position reduction outstanding and its margin pool safe. A withdrawal repair's embargo lasts until the next scheduled rebalance. A completed scheduled rebalance clears old embargoes. An armed trigger can still pause buys.

Example: a cut-back fills partly

Illustrative assumptions: the trigger has armed, the fund has observed 3 asset units, its calculated safety target is 2 units, and the market permits a 1-unit reduction order.

The attempted reduction is 3 − 2 = 1 unit, submitted as a reduce-only immediate-or-cancel limit order.

If only 0.4 units fill, 3 − 0.4 = 2.6 units remain, still 0.6 units above the safety target.

The unfilled immediate-or-cancel amount does not wait on the book; later observed state and eligible trade calls can attempt the remaining reduction.

A later order can also fill partly or fail, and further price moves or liquidation can occur before the target is reached.

Trusted roles in the alpha

Trusted operators can affect when the fund trades and pays.

Anyone can add HYPE to the gas buffer used for cash transfers.

The keeper sends rebalance, trading, cash-transfer, and settlement calls that anyone else may also send.

The trusted attestor can clear an unresolved buy's order slot, while its uncertain inventory remains reserved.

The guardian can pause buys or start a terminal wind-down immediately.

The admin can immediately lift the guardian's buy pause and replace the guardian or attestor.

Changes to implementation, upkeep, fee recipient, admin, or cancel key wait 48 hours on chain.

The admin or separate cancel key can cancel a queued change immediately.

Where assets live

Each fund holds positions in its own HyperCore account, with separate USDC margin pools for its perp exchanges.

Shares and the cash for sales live on HyperEVM, while collateral and spot balances can live on HyperCore.

Cash moves between these locations through bridge and transfer actions.