In Hyperliquid's Vault (especially HLP Vault), as a fund pool, its liquidation rules are similar to those of ordinary user accounts, but the specific details are different due to its special role. The following are the key points of the Vault liquidation rules:
(1) Liquidation trigger conditions
The liquidation of the Vault is based on its account equity (Equity) and maintenance margin requirement (MMR).
When the net assets of the Vault (total deposits + unrealized profit and loss) are lower than the maintenance margin required for its position, liquidation will be triggered.
The formula is roughly: Equity = Total Deposits + Realized P&L + Unrealized P&L If Equity < MMR, the Vault will be liquidated.