Glossary

Terms as this documentation uses them.

Strategy

Systematic CTA. A manager running trend-following and related strategies on a mechanical, price-derived signal, with no discretionary override. The managed-futures model institutional funds have run since the 1970s.

Trend following. Long what is rising, short what is falling. The payoff is many small losses funded by a few large gains. See Etesia Multistrat.

Equal risk contribution. Portfolio weights chosen so every asset contributes the same share of total portfolio variance, rather than weighting by market capitalisation.

Volatility targeting. Scaling positions so realised portfolio volatility stays near a fixed level across market regimes.

Sharpe ratio. Return per unit of volatility. Meaningless without the window it was measured over, which is why every Sharpe on this site carries one.

Drawdown. The fall from a peak in the equity curve to the subsequent trough.

High-water mark. The highest share price at which a performance fee has been charged. Gains below it are never charged twice.

Perpetual. A futures contract with no expiry, held in line with spot by a periodic funding payment between longs and shorts.

Funding. That periodic payment. A cost or a revenue depending on the side of the position.

Tokenized RWA. A real-world asset represented onchain. In our universe: the metals, energy and equity-index sectors.

Vault mechanics

ERC-4626. The standard interface for a tokenized vault with synchronous deposits and redemptions.

ERC-7540. An asynchronous extension of ERC-4626: you request, the vault settles at a valuation computed for that moment, then you claim. Necessary when a vault's value cannot be read in one call. See How They Work.

Lagoon. The vault framework our EVM vaults are built on, by Hopper Labs. Audited; see Security.

Silo. The contract holding assets between a deposit request and its settlement.

Settlement. The moment the vault fixes a share price from a proposed NAV and mints or burns shares against it. We settle when a deposit or redemption is pending, otherwise once per UTC day.

NAV. Net asset value: what the vault's portfolio is worth, computed from venue and chain state.

Share price. totalAssets / totalSupply, restated at each settlement. Mind the decimals: shares carry 18, USDC carries 6.

Redemption cooldown. The 7 day wait between a redemption request and its settlement on the Multistrat vault.

Roles and infrastructure

Curator. On this site, our own settlement role: the authority that settles deposits and redemptions and bridges between layers. Elsewhere in DeFi the word can mean a third-party risk manager selecting markets for a vault.

Valuation manager. The key permitted to propose a NAV, and nothing else. Proposing and applying are separate permissions.

Safe. A Gnosis Safe multisig holding the vault's working capital.

Zodiac Roles Modifier. A Safe module that restricts a key to specific calls with specific parameters, so it can act without holding full Safe authority.

API wallet, agent. On Hyperliquid, a delegated key registered to trade an account without being able to withdraw from it.

Eject. Our operator-triggered evacuation of the vault's Hyperliquid footprint back into the Safe.

Venue

Hyperliquid. The perpetuals exchange the strategy executes on, with its own L1 and an EVM layer.

HyperEVM. Hyperliquid's EVM chain, id 999, where the Multistrat vault lives.

HyperCore. Hyperliquid's trading layer, as distinct from HyperEVM. USDC is bridged between the two by the curator.