Using Liminal Effectively

This guide is intended for users who want to optimize their experience on Liminal by minimizing friction, unnecessary costs, and avoidable errors. It is structured according to the natural lifecycle of a strategy on the platform.

1. Before Getting Started: Understanding the Underlying

Liminal operates entirely on Hyperliquid. This means that every strategy executed through Liminal is subject to:

• Hyperliquid trading fees (maker/taker)

• Spread between spot and perp prices

• Market behavior specific to Hyperliquid

These parameters are external to Liminal and depend entirely on Hyperliquid’s infrastructure and dynamics.

Using Liminal implies interacting with Hyperliquid. Users must understand the implications:

• Spread may erode capital during entry and exit

• HL fees or slippage can materially impact net performance

A clear understanding of Hyperliquid mechanics helps interpret balance variations and identify where capital friction originates.

Liminal is not a fixed-rate yield vault. It enables access to delta-neutral strategies fully built on Hyperliquid, capturing funding rate opportunities across assets. The 30d APY shown is an annualized estimate based on current market conditions. This rate is:

• Dynamic and not guaranteed

• Sensitive to short-term funding volatility

• Affected by capital inflows (as more deposits compress available yield)

Users should not blindly chase the highest APY at a given time, but rather assess the strategic fundamentals.

2. Depositing: An Executable Action

When a user deposits into Liminal and selects a strategy, execution is immediate and automated:

• Spot leg is bought

• Perp leg is shorted

• Fees are charged (trading, spread, builder)

This means every deposit triggers a real position entry. Switching strategies or withdrawing immediately results in a full re-execution, compounding fees and spread costs.

Select your strategy with intent. Avoid unnecessary repositioning.

3. Strategy Selection: Don’t Chase APY

The most attractive funding opportunities are often:

• Short-lived and volatile

• Compressed when capital piles in

• Linked to assets with low liquidity or high directional risk

Displayed APY does not account for:

• Entry and exit costs

• Spread-related friction

• Market reversals

Frequent strategy switching typically leads to:

• Lower net performance

• Capital degradation through repeated execution

4. During Strategy: Let the Engine Work

Once positioned, Liminal continuously manages:

• Initial setup and maintenance of delta-neutral exposure

• Ongoing rebalances

• Liquidation-handling and re-entry logic

For regular users, this process is fully automated, no manual intervention is required.

For institutional users, certain post-liquidation situations may require manual action (e.g. equalizing spot/perp balance), as Liminal has trading rights but no fund transfer permissions in that mode.

If manual action is required, users are:

• Prompted via Telegram notification

• Presented with an in-app modal

Until the user acts, the impacted funds are held in USDC, unexposed and delta-neutral.

Manual interaction with the dedicated subaccount is prohibited. It disrupts execution, invalidates delta-neutrality, and prevents the engine from operating properly.

5. Withdrawals: Understand the Mechanics

A withdrawal triggers:

• Exit from the strategy (closing both spot and perp legs)

• Hyperliquid-related fees and slippage

• Transfer of funds (to Hyperliquid or Arbitrum)

Regular users can withdraw to Hyperliquid or Arbitrum. Institutional users are limited to Hyperliquid.

Withdrawals are triggered instantly upon click, with no further signature confirmation.

Be cautious, one click initiates irreversible execution.

For Arbitrum withdrawals, bridging may take a few minutes depending on congestion.

Note: To minimize spread-related impact, it is generally preferable to withdraw when funding rates are low, as high funding often creates larger discrepancies between spot and perp prices. However, spreads can occasionally be positive, meaning you might exit with a slight gain if conditions are favorable.

6. Common Pitfalls to Avoid

• Frequent strategy switching based on short-term APY

• Attempting to "time" the highest funding window

• Manual interference with subaccounts

• Ignoring Telegram alerts or app modals

• Repeated deposit/withdraw cycles

7. Core Principle

Liminal is optimized for rational, passive, consistent use.

Every execution incurs cost. To maximize alignment with projected APY:

• Choose a coherent strategy

• Stay positioned through funding cycles

• Let the engine operate autonomously

• Minimize churn and unnecessary operations