Trust model
What is guaranteed by code, and what is disclosed risk
Guaranteed by the contracts
No theft. The trading agent is order-only: the action set it can sign excludes every value-moving operation (withdrawals, transfers, bridges). Vault payouts are hardcoded to the recorded shareholder. Neither the manager nor the platform can move funds out.
No griefing. Withdrawals cannot be permanently blocked. The queue has a timeout with permissionless force-resolution, and emergency paths exist to recover funds from Hyperliquid back to the vault.
No non-trading loss. The NAV model counts only assets whose existence and value the contract can verify on-chain, with cost-basis caps on self-reportable values. Accounting cannot be inflated.
Disclosed manager risk
Trading outcomes — including bad trades, high leverage, and self-dealing — are the manager's disclosed risk, exactly as with any delegated trading arrangement. The platform bounds this by venue curation (the protocol curates which HIP-3 dex venues are eligible at all, favouring deep, liquid markets; spot is an open universe of any live, USDC-quoted Hyperliquid token, valued at min(market, cost)) rather than by code that restricts the trader.
There are no forced risk breakers: an earlier design that auto-paused vaults on leverage or drawdown was removed because it could deadlock deposits. What a vault may trade is curated; how it trades is the manager's mandate.