Technical Whitepaper
Deep dive into the architecture, algorithms, and design principles behind our risk-aware copy trading platform
1. Vision
The goal of this project is to build a professional-grade automated trading & copy trading platform focused on Hyperliquid. We emphasize risk-aware copy trading, configurable quantitative strategies, and transparency.
Unlike generic bots, we prioritize capital normalization, margin safety, and strict risk controls to protect user capital.
2. Core Principles
Copy Risk, Not Size
We calculate position size based on risk percentage relative to capital, never simply mirroring position sizes
User Capital Safety First
Margin checks and liquidation buffers are mandatory before every trade
Transparent Performance
All historical performance is verifiable and transparent on-chain
Hyperliquid-Native
Deeply integrated with Hyperliquid's high-performance L1 for optimal execution
3. The Problem with Traditional Copy Trading
Why Traditional Copy Trading Fails
Directly copying positions from large wallets leads to disaster for small accounts:
- Over-leverage: Copying a $1M whale's leverage on a $1k account can instantly wreck the follower
- Margin Exhaustion: Naive copying ignores the follower's existing margin usage
- Liquidation Cascades: Without safety buffers, followers are liquidated long before leaders
Our Solution: Risk-Aware Normalization
We derive position size from the leader's risk exposure and the follower's allowed risk per trade. If a leader risks 1% of their $1M portfolio, you risk 1% of your $1k portfolio—perfectly scaled.
4. Technical Architecture
Backend
- Node.js (TypeScript)
- NestJS/Fastify for REST + WebSocket
- Redis for high-speed queues
- PostgreSQL for data persistence
- Prisma ORM
Frontend
- Next.js 16 (App Router)
- Modern React with TypeScript
- Tailwind CSS
- Shadcn UI components
- Framer Motion animations
Security Infrastructure
- Encrypted API key storage
- No withdrawal permissions
- Rate limiting and DDoS protection
- Full audit logs
5. Tokenomics & Monetization
Sustainable revenue models ensure long-term platform viability:
Performance Fees
Profit-sharing on successful copy trades, aligned with user success
Builder Codes
Revenue share for strategy creators in the marketplace
Referral Program
Incentives for community growth and user acquisition
6. Roadmap
Phase 0 - MVP
- Hyperliquid trade execution
- TradingView signal integration
- Basic bot configuration
- User wallet management
Phase 1 - Reliability
- Backtesting engine with realistic simulation
- Risk-based copy trading V1
- Enhanced performance dashboards
Phase 2 - Advanced
- Advanced risk controls
- Copy trading profiles
- Multi-leader strategies
- Mobile application
Phase 3 - Ecosystem
- Strategy marketplace
- AI-assisted optimization
- Community governance
- Cross-chain expansion