Superior Withdrawal Model

Withdrawals on OpenFund are designed to balance fund manager control with investor accessibility, ensuring fund stability while maintaining flexibility for users.

Deposit Withdrawal Timer

When creating a fund, managers can set a deposit withdrawal timer that limits users from requesting withdrawals for a set period after depositing.

This ensures that fund managers have adequate time to manage liquidity, preventing sudden capital drain.

This timer is permanent and cannot be changed after fund creation, ensuring predictable fund management.

Withdrawal Request Timer

Fund managers can configure a withdrawal request timer that provides a buffer period after a withdrawal request is made.

This window allows fund managers to properly assess liquidity conditions and execute trades accordingly.

The request timer can be set from 24 hours up to a week, preventing margin fluctuations that could cause forced liquidations.

Forced Liquidations

If a manager does not free up enough native assets (e.g., SOL, ETH, USDC, USDT) to fulfill withdrawal requests by the end of the set timer, forced liquidation will occur.

Managers can establish a custom hierarchy for asset liquidation, prioritizing which tokens should be sold first.

If no liquidation preferences are set, OpenFund will automatically sell assets based on best execution, ensuring fair and efficient fund management.

Comparison to Existing Models

Many withdrawal models in traditional and DeFi systems harm fund stability due to instant liquidity demands, leading to forced sales, market inefficiencies & unexpected liquidations.

OpenFund mitigates these risks by introducing structured withdrawal timelines, preventing sudden capital outflows that could disrupt leveraged or actively traded positions.

This approach enhances fund sustainability while still offering investors predictability and flexibility in their withdrawals.

By combining strategic liquidity management, customizable withdrawal parameters, and automatic safeguards, OpenFund sets a new standard for responsible and efficient fund withdrawals.

"Had some realizations from the Hyperliquid vault.

Instant withdrawals mean an unsustainable model for funds. You can’t take positions and risk a bank run any moment.

It’s enough complexity to just run a portfolio with leveraged futures in relation to a capital that changes due to performance.

It’s a complexity nightmare to do it with a portfolio value moved by positions and/or withdrawals. And sometimes having both go against you at the same time multiplying the fragility.

Anyway these are just things I suggest to anyone wanting to build or use vaults."

— Yugo Viking (Raised a $2.5m fund on Hyperliquid in 2 days)