An ambitious DeFi protocol bringing sophisticated leverage tools to Hyperliquid, but the combination of exotic collateral, complex oracle pricing, and dependency on a young L1 creates elevated risk. Three Sigma's audit provides some comfort, but the protocol is still early-stage with unproven resilience under stress. Suitable for risk-tolerant DeFi users who understand Hyperliquid's ecosystem.
Top Risks
1
Built natively on Hyperliquid — inherits all risks of a relatively new L1 with limited battle-testing and concentrated validator set
2
Frontier Vaults expose users to exotic collateral types (UETH, hwHLP, WHLP) with complex multi-hop oracle pricing that can fail under stress
3
Liquity V2-style CDP system minting feUSD introduces novel redemption and liquidation dynamics that are untested at scale
Risk Breakdown
Frequently Asked Questions
Is Felix Vaults safe to use?
Felix Vaults receives a C+ risk grade (39/100) from Hindenrank, where lower scores indicate lower risk. An ambitious DeFi protocol bringing sophisticated leverage tools to Hyperliquid, but the combination of exotic collateral, complex oracle pricing, and dependency on a young L1 creates elevated risk. Three Sigma's audit provides some comfort, but the protocol is still early-stage with unproven resilience under stress. Suitable for risk-tolerant DeFi users who understand Hyperliquid's ecosystem. Felix Vaults is a modular leverage protocol built natively on Hyperliquid, offering two core products: a CDP system that mints feUSD stablecoin against crypto collateral, and Morpho-powered lending markets including Frontier Vaults for exotic collateral types. Felix gives Hyperliquid users access to leveraged yield strategies and stablecoin borrowing. However, it inherits all risks of the Hyperliquid ecosystem and introduces novel risks through its exotic collateral types and multi-hop oracle pricing, which have been flagged by security auditors.
What are the main risks of using Felix Vaults?
The key risks identified for Felix Vaults are: (1) 100% dependent on Hyperliquid — if the chain goes down, Felix goes down with it (2) Exotic collateral types (vault tokens) create recursive risk loops that amplify losses (3) Security auditor flagged oracle pricing vulnerabilities that could lead to bad debt (4) feUSD is a new stablecoin with limited liquidity and unproven peg stability
What is Felix Vaults's risk score breakdown?
Felix Vaults scores 39/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 8/20, Oracle Surface: 3/10, Documentation Gaps: 3/10, Track Record: 5/15, Scale Exposure: 5/10, Regulatory Risk: 2/10, Vitality Risk: 7/10. The highest risk area is Vitality Risk at 7/10.
How does Felix Vaults compare to other Yield protocols?
Among 112 rated Yield protocols on Hindenrank, Felix Vaults ranks #67 by safety (lowest risk score = safest). Its 39/100 risk score and C+ grade place it in the middle tier of Yield protocols.
Has Felix Vaults ever been hacked or exploited?
Felix Vaults scores 5/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.