Hyperliquid Platform Performance & Stability - Hyperliquid experienced 100% uptime and zero bad debt during recent market volatility [1] - The platform executed its first cross-margin Auto-Deleveraging (ADL) in over two years of operation [1] - Billions of dollars worth of positions were liquidated on Hyperliquid within minutes [4][9] - Hyperliquid's design includes transparent on-chain verification of every order, trade, and liquidation [4] Liquidation Mechanisms & Risk Management - Hyperliquid's system liquidates positions that do not meet maintenance margin requirements to maintain solvency [3][4] - Liquidations are first attempted against the order book, followed by backstop liquidations via HLP (Hyperliquid Pool) [6] - Auto-Deleveraging (ADL) serves as the liquidation mechanism of last resort [7] - HLP (Hyperliquid Pool) functions as a backstop liquidator, designed to provide liquidity of last resort and maintain system solvency [5][10] HLP (Hyperliquid Pool) Analysis - HLP is structured with multi-component child vaults to manage risk effectively during liquidations [6][10] - HLP's child vaults were the largest addresses on the triggered side of ADL, absorbing significant losses [11] - Traders on the providing side of ADL against HLP's child vaults realized hundreds of millions of dollars in additional profit [11] Competitive Advantage & Philosophy - Hyperliquid does not charge liquidation fees, prioritizing system solvency over revenue extraction [10][12] - Hyperliquid emphasizes transparency and fairness in its financial system [4][13]