Regular vs Self-Custody

For security-conscious users, DeFi institutions, or individuals who want to retain full control of their funds, Liminal offers a unique self-custody option. This mode allows you to run the same delta-neutral strategies directly from your own Hyperliquid account (sub-account). The benefit is that you retain full custody of your assets and gain more control, while Liminal’s engine still executes trades on your behalf via Hyperliquid's native agent system.

Key Features of Self-Custody Mode:

• Self-Custody via Hyperliquid Agent: Self-Custody users authorize Liminal as an “Agent” (trade-only; revocable anytime; typical validity ~6 months) on their Hyperliquid account. You give Liminal permission to execute trades on a specific sub-account of your Hyperliquid account, without granting any transfer or withdrawal rights. Liminal cannot move your funds out; it can only trade within the sub-account. You retain the ability to revoke this permission at any time here.

• Dedicated Sub-Accounts: Liminal creates a separate sub-account under your Hyperliquid account. This isolates the strategy’s funds and positions from your other trading activities and from other strategies. Each sub-account has its own balances, margin, and risk isolated. This also means you can run multiple strategies or allocate to Liminal while keeping your main account separate.

• Eligibility: Hyperliquid currently requires at least $100k of executed trading volume to create a subaccount. Additionally, if you already have funds deposited in regular mode, you’ll need to fully withdraw them first before switching to Self-Custody Mode. Once these conditions are met, you can activate Self-Custody directly from the Liminal interface by clicking on “Custody” at the top right.

How to Activate Self-Custody Mode:

In the Liminal app, open the top-right dropdown menu and click on “Custody”. The app will display the requirements and guide you through the activation process.

1. Authorize Agent: Liminal will ask you to authorize its trading agent to manage your strategy automatically in Self-Custody Mode. Click Authorize and sign the message in your wallet. Note: The trading agent authorization is valid for 6 months. Close to expiration date, you’ll receive a notification from Liminal asking you to sign a new agent.

2. Create Sub-Account: Through Liminal, create a dedicated Hyperliquid sub-account for your strategy. Enter a name to help you identify it (e.g. “LiminalStrategy”), then click Create Sub-Account. Liminal will automatically initialize this sub-account on Hyperliquid and link it to the trading agent authorized in Step 1. This sub-account will have its own balance and trading history, completely separated from your main Hyperliquid account and any other strategies.

3. Link Telegram: Connect your Telegram account to get real-time alerts about your strategy. If manual action is needed (e.g. rebalancing or equalizing balances), Liminal will notify you instantly, while your position stays delta-neutral throughout. To set up, click Verify Telegram Account in the app and send the code to the official Liminal Alerts Bot (@liminalalerts_bot).

4. Approve builder code: The first time you switch to Self-Custody Mode, Hyperliquid will ask you to approve builder codes. This step simply enables Liminal to use Hyperliquid’s built-in mechanism for charging fees. It’s a quick, one-time approval, once you confirm, the setup is complete and your strategy immediately runs in Self-Custody Mode.

Important Differences in Self-Custody Mode:

• Adjusting Balances During Rebalance

  In regular mode, everything is handled automatically, Liminal closes and reopens positions, moves USDC where needed, and keeps your strategy delta-neutral without any intervention.

  In self-custody mode, as Liminal can only execute trades on your Hyperliquid sub-account (and cannot transfer USDC between spot and perp balances), you’ll be prompted to equalize your balances after a rebalancing.

  For example, if positions are temporarily closed to manage risk, reopening the strategy might require shifting a small amount of USDC between your spot and perp balances to restore a perfectly delta-neutral position.

  There’s no urgency; your position remains non-directional even if you don’t adjust immediately. However, the affected portion of your funds will temporarily sit in USDC and won’t generate yield until you confirm the adjustment.

  You’ll also receive a notification via the Liminal Telegram bot (@liminalalerts_bot), guiding you step by step.

• Manual Actions: Do not interact manually with your Liminal sub-account

  When using Self-Custody Mode, Liminal executes all strategy actions (deposits, withdrawals, rebalancing, and liquidation handling) via the Hyperliquid Agent on your dedicated sub-account.

  Any manual interaction with this sub-account, such as placing trades, transferring funds, or modifying positions directly, will break strategy execution and deactivate the Execution Engine. This means Liminal can no longer guarantee proper performance or maintain delta-neutral exposure.

  To avoid this:

  • Only use the Liminal app to manage your strategy

  • Never trade or move funds directly in the Hyperliquid sub-account

  If such activity is detected:

  • You’ll receive an instant notification via Telegram

  • A modal will appear in the app prompting you to reset the strategy via a deposit/withdraw cycle before continuing

Agent Expiration & Renewal

In Self-Custody Mode, Liminal leverages Hyperliquid’s agent system to execute strategies directly from the user’s sub-account. These agents have a limited validity period, typically 6 months, after which they automatically expire.

Once an agent has expired, Liminal can no longer trade on behalf of the institution until it is renewed.

To prevent disruptions, users receive a Telegram notification 30 days before their agent is set to expire. From that moment, they can renew their agent at any time within this window to avoid the risk of being left without an active agent. Renewal is simple: just return to the Liminal interface and follow the same steps used during the initial setup.

These safeguards ensure capital protection, execution continuity, and optimal yield performance.

Regular mode is designed for users who want a simple, hands-off solution. You can deposit, let the strategy run, and essentially set it and forget it, Liminal handles everything automatically in the background.

Self-Custody mode, is tailored for more active or professional users who prefer to retain full custody of their funds and are comfortable keeping an eye on their positions. Self-custody users must handle rebalancing actions when prompted in order to protect positions, and every 6 months their Hyperliquid agent expires, requiring renewal through the Liminal interface to continue operating delta-neutral strategies. This mode is ideal for professional desks or active users who value custody and direct control over their execution.