What Are Hyperliquid Vaults?

What is a Hyperliquid vault?

A Hyperliquid vault pools deposited funds under a single trading strategy. Depositors share in the vault's PnL proportional to their share of the vault's total value locked (TVL), without placing trades themselves. Vaults come in two types:

• Protocol vaults (HLP): Hyperliquid's own community-owned liquidity vault, which takes the other side of certain flows on the exchange and shares the resulting PnL with depositors.
• User vaults: created by individual traders ("leaders") who trade the pooled funds under their own strategy. Anyone can deposit into a user vault to mirror that leader's performance.

Step-by-step: researching a vault before depositing

1. Open Hyperliquid Vaults: every active vault is ranked by TVL, with APR and leader shown for each.
2. Check the Type column. Protocol vaults (HLP) and user vaults carry very different risk profiles; a user vault's performance depends entirely on one leader's ongoing strategy.
3. Compare TVL and APR. A high APR on very low TVL can be a small sample of recent performance rather than a durable edge; the current rate is not guaranteed to continue.
4. Click the leader's address to open their full wallet analytics on LabelYX: PnL history, win rate, drawdown and consistency, before trusting the vault's headline APR.
5. Use the search box to jump straight to a specific vault by name once you know what you're looking for.

Why check the leader's track record, not just APR

A vault's displayed APR is a snapshot of past performance, and user-vault depositors are exposed to whatever drawdown the leader takes on; there's no separate risk management applied on top. Reviewing the leader's drawdown history and win rate (via their wallet analytics) gives a fuller picture than APR alone of whether that performance came from a consistent edge or a run of favorable trades.