Position lifecycle

Every Tuo position goes through the same five stages, whichever product you choose. You act at the first and the last. Tuo's keeper acts in between, inside the limits the vault enforces.

1. You deposit

You send any supported token, or native ETH, to the vault's deposit function with the product code you chose. If the token is not USDC, the vault swaps it through an allowlisted DEX aggregator. The USDC actually received becomes the position's basis; the deposit must convert to at least 2,500 USDC and the position's basis cannot exceed 25,000 USDC during the guarded launch.

The vault mints a position NFT to your wallet in the same transaction. Whoever holds that NFT owns the position and is the only address that can withdraw from it. You can top up an existing position later, as long as no withdrawal request is pending.

2. Capital is deployed

The Tuo engine prescribes a plan for the position: which pools, what price ranges, and how the USDC splits across them. The keeper swaps part of the idle USDC into the pool token and mints the Uniswap V3 ranges in the vault's name. The liquidity positions belong to the vault and are attributed to your NFT; no one can move them elsewhere.

A concentrated range earns trading fees only while the market price sits inside it. A narrow range earns more per dollar deployed and leaves its range sooner. See Concentrated liquidity.

3. The hedge opens

The keeper sends part of the position's USDC to the Hyperliquid operator account bound to your position, and that account opens a short perpetual for each range. The short offsets most of the price exposure the liquidity carries. The vault caps this margin at 50% of basis for Basis Plus Core and 90% for Delta Hedge Standalone, and it refuses to send any while a withdrawal request is pending.

From this point until the margin returns, that part of the position is outside the vault. See Custody model and Hedging on Hyperliquid.

4. The engine manages it

The engine reviews the position once a day on closed daily candles. It resizes a tracked short when hedge coverage drifts past its trigger, closes a range when the strategy's exit condition is met, and re-enters after a cooldown. The backend turns each signal into a keeper transaction, and the vault checks each one against its allowlists, price floors and budgets before it executes.

Tuo can rebalance the position. It can never move your funds anywhere except back to you. See Engine v25.

Meanwhile, the backend values the whole position every five minutes, hedge leg included, and shows it on your dashboard. See Valuation.

5. You withdraw

Withdrawal is two calls from your wallet. First, requestWithdraw with the share you want, from 1% to 100%. That arms the exit: the keeper burns every range, sells the balances back to USDC, closes the short, and brings the margin home. The vault credits what actually arrives. Once idle USDC covers your share, you send withdraw, which charges 30% of the profit being withdrawn and pays the rest in USDC or any allowlisted token. A full withdrawal burns the NFT.

If the keeper does not complete the unwind, emergencyWithdraw pays out everything the vault holds for the position, in kind, with no Tuo approval needed. See Withdrawals.

Who acts when