How your funds are protected on-chain.
ShieldTX lets you trade perpetuals on-chain using Hyperliquid, with full execution shielding. Your deposits, positions, and withdrawals are protected on-chain, and shielded from copy-traders and competitors. You retain custody of your assets at every step.
Overview
When you use ShieldTX, your tokens remain under your control, secured by your private keys, and stored securely in an on-chain vault with timeout protection. This document explains exactly what happens to your tokens at every step.
Token flow
-
1
Deposit
Your funds → Vault contract → ShieldTX
ShieldTX accepts deposits directly from every major EVM chain. Your USDC is added to ShieldTX's on-chain vault on Arbitrum via Avail Nexus. The on-chain vault contract locks your USDC, and credits your ShieldTX account with a shielded, spendable balance that only you can see or spend.
- Your USDC is secured on-chain by ZK proofs on Arbitrum and can only be released when you submit a signed transaction.
-
2
Open position
ShieldTX → Fresh Hyperliquid account
You choose a pair, direction, size, and leverage via the ShieldTX app. ShieldTX creates a brand-new Hyperliquid wallet on-chain, completely unlinkable to your deposit wallet or any previous on-chain trades. Your trade gets placed on Hyperliquid from this fresh wallet.
- You control the Hyperliquid position through ShieldTX using a wallet secured by Privy.
- When you place your open or close positions via ShieldTX, a separate on-chain smart contract executes the trade.
- If the funding process fails for any reason, your transaction reverts with automatic timeout protection. Your ShieldTX balance returns the full amount automatically.
-
3
Close position
Hyperliquid account → ShieldTX
Your position closes directly on Hyperliquid. Proceeds return to your ShieldTX balance, unlinkable to the Hyperliquid account used for the trade.
- You must initiate the close on ShieldTX. No one else can close your position.
- The ShieldTX validator confirms the settlement has completed on-chain before crediting your ShieldTX balance.
- Settlement is guaranteed on-chain. If the process fails for any reason, timeout protection automatically returns your funds.
-
4
Withdraw
ShieldTX → Your wallet
Funds that are not part of an active trade can be claimed from the ShieldTX vault at any point, by signing a transaction on-chain. The vault verifies the transaction and automatically releases the funds to your designated wallet address.
- You must initiate the withdrawal from ShieldTX. No one else can withdraw your funds.
- The vault automatically releases your funds once the ZK proof is verified on-chain.
- Double-spend prevention is enforced. Each withdrawal can only be claimed once.
Shielding guarantees
| What's shielded | From whom |
|---|---|
| Your shielded balance | Everyone. Only you and ShieldTX can see your balance. |
| Your deposit and your trades | Public observers, copy-traders, and competitors cannot link your deposits to your trades. |
| Different positions | Use a fresh, unlinkable Hyperliquid account for each trade on ShieldTX, breaking the link between your trading activity. |
| Your trading P&L and history | External observers. No one can look on-chain and decipher your entire P&L or trading history when you use ShieldTX. |
Safety mechanisms
| Mechanism | Protection |
|---|---|
| Vault contract | Core operations are permissionless and ZK-verified. Funds only move when cryptographically proven on-chain. |
| Zero-knowledge proofs | Every state transition (deposit, transfer, withdrawal) is cryptographically proven before it takes effect. |
| Key management (Privy) | Privy manages keys client-side. The server never sees your private keys. |
| Escrow with timeout | Funds locked in escrow auto-release if the funding or settlement process fails. No funds can be permanently stuck. |
Trust summary
| Component | Trust level |
|---|---|
| Vault contract | Permissionless All core operations are ZK-verified on-chain. No admin keys required. |
| ShieldTX | Verifiable Every state transition is ZK-proven and verified on-chain before L1 state advances. |
| Withdrawals | Trustless ZK proof + inclusion proof verified on-chain, permissionless claiming. |
Ready to trade with confidence?
Beta access is limited. 500 invites for the first cohort.
Request beta access