Hyperliquid Top Vault Strategy Analysis: From High-Frequency Alpha to Risk Management

This analysis provides a systematic quantitative breakdown of the top-performing strategy vaults within the Hyperliquid ecosystem, focusing on AceVault, Growi HF, Systemic Strategies, Amber Ridge, and MC Recovery Fund.

Evaluation Framework: The assessment uses a multi-dimensional framework analyzing performance, transaction efficiency, risk management, and strategic attribution metrics.
AceVault Hyper01 Deep Dive:
- Strategy & Performance: A high-frequency trading (HFT) strategy with $14.33M in assets. It achieved a 127% APR and a total profit of $103,110.82 over a 4-day analysis period, despite a low 28% win rate.
- Profit Model: Relies on an asymmetric structure with a high profit factor of 3.71. Large average profits (+$26.00) cover many small, controlled losses (-$2.70).
- Tactic: Systematically shorts 74 altcoins (generating +$137,804) while taking limited long positions only on BTC, ETH, and HYPE (resulting in a -$33,726 loss).
- Risk Management: Exemplary, with a maximum drawdown of only $791.20, showcasing strict built-in stop-loss mechanisms.
Key Findings Across All Vaults:
- Risk Control Over Win Rate: Top strategies succeed through asymmetric profit/loss structures, not high win rates.
- Asymmetric Victory: Vaults like MC Recovery Fund (profit factor 43.1) prove that making large gains while minimizing losses is the core profit model.
- Maximum Drawdown as a Stress Test: Vaults like AceVault and MC Recovery Fund show minimal drawdowns, indicating robust models. In contrast, Amber Ridge's drawdown reached 87% of its total profit, indicating high volatility.
- Diverse Alpha Sources: Successful strategies vary, from AceVault's systematic altcoin shorting to Growi HF's aggressive trend-following and MC Recovery Fund's balanced long-short "all-weather" approach.

The true value of a vault strategy lies not in its surface-level APR but in its risk management capabilities, as revealed by its profit/loss factor and maximum drawdown. An asymmetric structure and rigorous risk control are essential for long-term profitability.

Author: Kevin

The Vault ecosystem on the Hyperliquid platform provides investors with a unique window into and participation in on-chain derivatives strategies executed by professional managers. This article provides a systematic quantitative analysis and strategy analysis of the top performing vaults within this ecosystem.

Evaluation Framework and Data Methodology

To conduct an objective and multi-dimensional comparison, we selected five representative vaults on Hyperliquid that rank among the top in terms of management scale and performance. They are: AceVault, Growi HF, Systemic Strategies, Amber Ridge, and MC Recovery Fund.

Our evaluation framework will focus on the following core indicators to build a complete profile of each vault strategy:

Performance Indicators:

Total profit during the period (PNL), number of profitable trades, total number of trades, win rate, and profit and loss factor.

Transaction efficiency indicators:

Average single profit and loss, average single profit, average single loss.

Risk Management Indicators:

Maximum drawdown, standard deviation of single profit and loss, and profit and loss volatility ratio (i.e. average profit and loss / standard deviation).

Strategic attribution metrics:

The profit and loss contribution of each currency, and the long and short position preferences of specific currencies.

For data acquisition, we extracted the longest available historical trading data for each vault stored on Hyperliquid. It's important to note that due to the platform's data storage limitations, the historical data period for high-frequency trading (HFT) vaults is relatively short, with the analysis window available ranging from three days to two months. However, for strategies with lower trading frequency, we can observe longer historical performance.

AceVault Hyper01

Analysis data period: October 16, 2025 - October 20, 2025

1.1 Strategy Overview and Market Position

AceVault Hyper01 is not only one of the largest strategy vaults in the Hyperliquid ecosystem by assets under management (TVL), but its performance is also remarkable. As of October 20, 2025, the vault's TVL reached $14.33 million. Since its inception in August 2025, the strategy has generated $1.29 million in profits, with an annualized rate of return (APR) of 127% over the past month, demonstrating strong and sustainable alpha generation capabilities.

1.2 Trading Behavior and Performance Quantification

During the four-day analysis period we selected, the vault recorded a total of 19,338 closing records, providing us with a high-precision sample for deconstructing its strategy.

Core performance indicators:

Total PNL: +$103,110.82

Win Rate: 28%

Profit Factor: 3.71

Profit and loss structure analysis:

Average profit and loss per trade (Avg. PNL): +$5.33

Average single profit (Avg. Win): +$26.00

Average loss per trade (Avg. Loss): $2.70

Risk Indicators:

Max Drawdown: $791.20

Standard Deviation of PNL (StdDev of PNL): 26.84

Profit and loss volatility ratio (Avg. PNL / StdDev): 0.199

1.3 Strategy Profiling and Risk Attribution

Strategy Profile: High-Frequency, Asymmetric, Systematic Short

AceVault's trading frequency ranks among the highest among all vaults, making it an extremely high-frequency trading (HFT) strategy. Its win rate is only 28%, while its profit/loss factor is as high as 3.71. This exhibits the typical characteristics of a trend-following or momentum strategy: the strategy does not rely on a high win rate, but rather on a small number of highly profitable trades (average profit of $26.00) to fully cover large but tightly controlled losses (average loss of $2.70).

This highly asymmetric profit and loss structure is the core of its profit model.

Profit Attribution: A Total Victory for Altcoin Bears

The strategy trades a wide range of assets (covering 77 assets), yet its long and short positions demonstrate remarkable consistency and discipline:

Long position operation: only executed for the three mainstream assets of BTC, ETH and HYPE.

Short Operations: Execute only short operations on all other 74 altcoins.

During this analysis period, the strategy's profit sources are extremely clear:

Short position: Cumulative profit +$137,804

Long positions: Cumulative loss $33,726

This shows that AceVault's entire net profit came from its systematic shorting of 74 altcoins. The largest contributor to profit came from its short position in $FXS (+$34,579), while losses were concentrated in its long position in $HYPE (-$16,100).

Risk Management: Ultimate Loss Control

This strategy demonstrates textbook risk management. With a TVL of $14.33 million and a trading frequency of nearly 20,000, its maximum drawdown over four days was strictly controlled to $791.20, an impressive figure. This is highly consistent with the average single-trade loss of -$2.70, demonstrating the strategy's systematic and extremely strict built-in stop-loss mechanism.

1.4 Summary

AceVault Hyper01 is a highly systematic, logically executed, and rigorously executed high-frequency strategy. Its core model involves taking long positions in a basket of mainstream assets (perhaps as a beta hedge or for long-term holdings) while systematically executing high-frequency short positions in the broader altcoin market.

During the analyzed market cycle, the strategy's excess returns were entirely due to its precise capture of altcoin declines. Its top-tier risk control system ensured that even when executing low-probability strategies, losses were strictly limited to a manageable small range, resulting in healthy and strong overall profitability.

Summarize

Through in-depth quantitative analysis of Hyperliquid’s five top vaults (AceVault, Growi HF, Systemic Strategies, Amber Ridge, and MC Recovery Fund), we were able to penetrate the surface of high APRs and total returns and gain insight into the core of their strategies—not all high returns are created equal.

Our analysis revealed several key findings:

1. Risk control, not win rate, is the cornerstone of top strategies: Contrary to conventional wisdom, the most successful vaults in this analysis do not rely on high win rates (AceVault 28%, Growi HF 38%, MC Recovery 48%). Instead, their success stems from a common, rigorously executed logic: asymmetric profit and loss structures.

2. A prime example of "asymmetric victory": MC Recovery Fund exemplifies this model. Its impressive 43.1 win/loss factor is the product of near-perfect risk management: the average loss per trade is only $18, while the average profit is a whopping $862. The same holds true for Growi HF (win/loss factor of 10.76). This demonstrates that their profit model isn't based on "a high number of wins," but rather on "suffering minimal losses while capturing significant returns on gains."

3. Maximum drawdown is a "stress test" for strategies: Comparing the "Maximum Drawdown" and "Drawdown Percentage" columns in the chart clearly delineates the robustness of strategies. MC Recovery Fund (drawdown $3,922) and AceVault (drawdown $791) demonstrate textbook-level risk control, with their historical maximum drawdowns being almost negligible.

In contrast, Amber Ridge's drawdown reached $340,000, representing 87% of its total profit, meaning investors experienced extreme volatility, with profits practically wiped out. Systemic Strategies' recent $128,000 drawdown also exposed the fragility of its model.

4. Sources of Alpha Diverse: Successful strategies vary. AceVault systematically shorts altcoins through high-frequency trading; Growi HF is an aggressive long-hunter, capturing trends under strict risk management; and MC Recovery Fund demonstrates a sophisticated long-short balance, creating an "all-weather" strategy. This demonstrates the depth of the Hyperliquid ecosystem, allowing for the coexistence of different types of alpha strategies.

For investors, evaluating a vault requires more than just looking at the surface APR. The true value of a strategy lies in its risk management capabilities, as revealed by its profit and loss factor and maximum drawdown. In the high-volatility, high-leverage arena of Hyperliquid, an asymmetric profit and loss structure is the key to achieving long-term profitability, and rigorous risk control is the only path to victory.