🔵HyperPack Arbitrage
🔍 Overview
Welcome to Vectis, your gateway to transparent, high-yield, delta-neutral strategies across chains and venues. HyperPack is our latest innovation — a cross-exchange arbitrage vault designed to help users passively earn yield by capturing funding rate inefficiencies between Hyperliquid, a high-performance decentralized exchange built on its own Layer 1, and Backpack Exchange, a regulated centralized exchange operated by the Coral team.
This strategy intelligently manages long and short positions across both platforms, optimizing for funding spreads, execution depth, and volatility profiles. If you’re looking for passive, sustainable crypto yield — not just from one asset or platform, but across a growing universe of perp markets — you’re in the right place.
📈 How the Strategy Works
What is Funding Rate Arbitrage?
Perpetual futures exchanges use funding rates to keep their contract prices aligned with spot markets. These funding payments shift between longs and shorts every few hours, depending on which side is over-leveraged. When one platform shows persistently negative funding and another shows neutral or positive rates, there’s a consistent arbitrage spread to capture.
The HyperPack vault opens a delta-neutral position: it shorts where funding is negative and simultaneously goes long where funding is favorable. These positions cancel out directional exposure, meaning your capital isn’t speculating on price movement — it’s earning yield from the structural differences in market sentiment across exchanges.
Why Hyperliquid and Backpack?
Hyperliquid is a next-generation decentralized perpetuals exchange running on its own custom Layer 1 blockchain. It combines the speed and execution precision of centralized venues with DeFi’s foundational principles. With deep liquidity and sub-second latency, Hyperliquid is the ideal venue for deploying long-side capital with minimal slippage and optimal trade routing.
Backpack Exchange, meanwhile, is a regulated CEX with growing perp volume and active markets across major tokens. Its user base and funding profile differ from Hyperliquid’s, often resulting in pricing asymmetries that create consistent arbitrage opportunities.
Together, these platforms form a complementary ecosystem that supports sustainable, delta-neutral yield generation across a wide variety of token pairs.
🏗️ Vault Mechanics
How Deposits Work
Users deposit USDC into the HyperPack vault. Capital is algorithmically allocated between Hyperliquid and Backpack based on live funding data, position size, open interest, and liquidity profile. The vault’s rebalancing engine determines where capital is most efficiently deployed to capture the strongest yield differentials.
Once deposited, users begin earning yield based on funding performance. HyperPack continuously optimizes exposure — across time, exchanges, and asset pairs.
Leverage Strategy
To maximize efficiency, the vault applies dynamic leverage — typically up to 5x, but adjusted in real-time based on market volatility, collateral availability, and margin risk. Position sizing is customized for each asset class. Whether it’s SOL, ETH, BTC, or emerging markets like HYPE, TRUMP, KAITO, or BERA, the vault tailors its leverage and hedging thresholds based on historical and current risk conditions.
Withdrawal Timeline
All withdrawals are subject to a 48-hour delay, which ensures that leveraged positions can be closed safely and efficiently before funds are returned. This helps prevent slippage during large redemptions and preserves performance for all vault users.
Withdrawals can be requested any time, but are only eligible 24 hours after initial deposit. Once the waiting period elapses, withdrawals are processed on a rolling basis.
Fees
Management Fee: 2% annualized, used to support infrastructure, execution systems, and operational monitoring.
Performance Fee: 20% on realized net profits — aligned with your success.
No Deposit or Withdrawal Fees: Your capital remains fully allocated and productive.
🔐 Security & Risks
Liquidation Safety
Margin health is continuously monitored across both venues. The vault only opens positions where collateral can be safely maintained and where liquidation buffers exceed internal thresholds. The HyperPack engine tracks exchange-specific margin parameters and includes dynamic stop mechanisms to reduce exposure if volatility spikes.
Each strategy leg is executed in segregated subaccounts, ensuring that risk on one side does not affect the other. If margin levels fall below target, positions are reduced in real time to protect user capital.
🎁 Multi-Asset Rotation
Dynamic Token Pair Allocation
HyperPack is built to support a broad and ever-expanding set of perp markets. Unlike strategies limited to just ETH or SOL, this vault actively rotates across dozens of token pairs — including HYPE, TRUMP, KAITO, BERA, and more.
The strategy scans real-time funding rates across all supported pairs, reallocating capital to the most favorable opportunities while avoiding overconcentration. This multi-asset flexibility is critical to maintaining high, uncorrelated returns — especially in volatile or range-bound markets.
As exchange listings grow and new perp pairs mature, the vault will dynamically integrate them into its optimization logic.
❓ FAQ
Can I monitor my performance?
Yes — vault share price, strategy yield, and live funding spreads will be available in our upcoming analytics explorer.
Is the vault risky?
All trading strategies carry risk. However, HyperPack is delta-neutral, meaning it avoids directional exposure to price movement. Risk is actively managed via real-time collateral monitoring, position sizing, and rebalancing logic.
Why is there a 48-hour withdrawal delay?
This ensures positions can be unwound gracefully across both exchanges without forced liquidation or impact on vault NAV. It’s a key part of risk mitigation.
What happens if the funding rate spread reverses?
The strategy dynamically adjusts. When funding environments flip, the vault rotates exposure to capture positive yield from the opposite direction. Allocation shifts are made automatically.
Do I need a Backpack or Hyperliquid account?
No. All trading is executed through vault-managed subaccounts. You retain exposure to the strategy without needing to register or interact with the exchanges directly.
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