> For the complete documentation index, see [llms.txt](https://harmonix-finance.gitbook.io/harmonix-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://harmonix-finance.gitbook.io/harmonix-docs/products/vaults/hyperliquid-usdc-hype-delta-neutral-vault.md).

# Hyperliquid USDC HYPE Delta Neutral Vault

### Strategy

\- Deposit Stablecoins: Users deposit USDC into the vault.

\- Position Allocation: 50% spot $HYPE : 50% shorts $HYPE on perps (1x leverage).

\- Delta Neutral Exposure: Earn HyperliquidX funding rates without relying on price movements.

<figure><img src="/files/n4sN1eWV6NNHj4zMYvsH" alt=""><figcaption></figcaption></figure>

### Rewards

\- Earnings: Funding rate yields + Harmonix Points.

### Risks & Costs:&#x20;

To help users better understand the risks and costs associated with the vault, we’ve outlined the following:&#x20;

* **Deposit Costs:**&#x20;

  * Trading Fees: 0.03% per transaction on Hyperliquid. For both spot and perp trades: 0.03% x 2 = 0.06% trading fees.&#x20;
  * Estimated Slippage: 0.02%.&#x20;
  * Total Costs: 0.08% per deposit.

  Ensure you stay in the vault long enough to let funding rate earnings cover these fees before withdrawing.&#x20;
* **Spread Risk:** The spread is the price difference between spot and perpetual futures. It can impact your PnL when closing positions:&#x20;
  * Profit Scenario:&#x20;
    * Entry: Short [$HYPE](https://x.com/search?q=%24HYPE\&src=cashtag_click) at $26.20 (futures) vs. $26 (spot).&#x20;
    * Exit: Spot remains $26, futures drop to $25.80 (spread narrows).&#x20;
    * Outcome: Spread profit = +$0.40 per [$HYPE](https://x.com/search?q=%24HYPE\&src=cashtag_click).&#x20;
  * Loss Scenario:&#x20;

    * Entry: Short [$HYPE](https://x.com/search?q=%24HYPE\&src=cashtag_click) at $26.20 vs. $26 (spot).&#x20;
    * Exit: Spot rises to $28, futures at $28.50 (spread widens).&#x20;
    * Outcome: Spread loss = -$0.30 per [$HYPE](https://x.com/search?q=%24HYPE\&src=cashtag_click).

    &#x20; Positive funding rates can offset losses, but not always entirely. Therefore, ensure you stay in the vault long enough to let funding rate earnings cover these fees before withdrawing.

[**Track Performance:** ](#user-content-fn-1)[^1]<https://app.harmonix.fi/dashboards/ba33d0f9-aa1f-4b59-af87-d0751ccb4dd3>

[^1]: