Vault
One pool of ETH stands behind every market. It is what makes a four-minute-old curve tradeable at size, and it is why there is a spread to collect at all.
Hedge in line. 0.57 ETH net short on Hyperliquid against the book’s aggregate direction, rebalanced when the imbalance passes 5% of deposits.
Withdrawals are met from the idle 40% the utilisation cap holds back. If open interest is at the cap when you withdraw, the queue clears as positions close.
What you are actually holding
spETH is a claim on the pool, not a deposit receipt with a fixed value. Its price rises as fees and funding accrue and falls when traders win. You are short the traders as a group, and the vault hedges the part of that exposure which is just “the whole market went up” by running the offsetting position on Hyperliquid.
What is not hedged is one coin gapping on its own — there is no instrument to lay that off against, so it stays here. Expect flat-to-up weeks punctuated by drawdowns when a curve runs hard in one direction. The 60% utilisation cap exists so the pool is never fully committed and withdrawals do not depend on traders closing first.