> For the complete documentation index, see [llms.txt](https://docs.buoy.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.buoy.finance/for-vault-leaders/liquidity-and-withdrawals.md). # Liquidity & Withdrawals Depositors can withdraw at any time. Most withdrawals settle automatically without you lifting a finger — but as a Leader you should understand how the vault raises cash, because in some situations **your action is required**. ## How withdrawals are funded When a depositor's withdrawal is locked (their payout fixed in USDC), the protocol's settlement service raises the cash automatically, escalating from the least disruptive source to the most: 1. **USDC already on HyperEVM** — paid out directly, nothing touched. 2. **Free spot USDC on HyperCore** — the portion not held as margin, bridged back to the vault. 3. **Free perp margin** — pulled back with zero slippage (your positions stay open). 4. **Spot holdings** — sold for USDC. 5. **Perp positions** — partially closed, just enough, reduce-only. 6. **HIP-3 positions and idle HIP-3 margin** — closed and pulled back. Each step is one action per cycle: the service acts, waits for the fill or transfer to settle, then re-evaluates — so it never over-liquidates on stale numbers. {% hint style="warning" %} Steps 4–6 mean that **large withdrawals can force-close parts of your book**. The protocol will realize your positions if that's the only way to honor an exit — so never assume the book you left is the book you'll come back to. How to handle that is a real choice, covered under [Practical guidance](#practical-guidance) below. {% endhint %} {% hint style="info" %} Because vaults run in **unified-account** mode, there is no separate cash account to fund: a "buffer" just means leaving part of the vault's spot USDC balance un-held by margin. The more of your equity sits inside open positions, the more of a withdrawal has to come out of those positions. {% endhint %} ## When you must step in: `needs liquidity` Automatic liquidation can't reach everything. Options positions, sub-minimum dust, and any venue collateralized in something other than USDC are outside what the settlement service can safely unwind. If a locked withdrawal can't be funded from any automatic source, it enters a **needs-liquidity** state: the depositor's claim is recorded on-chain and waits. **This is your cue.** The withdrawal stays stuck until you free capital — close positions or move funds back toward spot/EVM. The settlement service re-checks continuously and pays the depositor the moment cash is available. A stuck withdrawal is bad for everyone: the depositor is waiting past the cancel timeout, and your vault's reputation is on the line. Treat needs-liquidity situations as urgent. ## Rules that protect depositors (and bind you) * **Locked means locked.** Once a withdrawal is locked, its USDC amount is fixed. Further trading — good or bad — doesn't change what that depositor is owed. * **Losses can trim a payout, but never below the depositor's quoted minimum.** If the vault's value genuinely fell while raising cash, the payout may be reduced to reflect it — floor-protected by their `minimum out`. * **You can't block exits.** There is no mechanism for a Leader to freeze, delay, or veto withdrawals. ## Practical guidance There is no protocol-mandated buffer, and no single right number. Two defensible approaches: * **Hold a buffer.** Leave a few percent of equity as un-held spot USDC so routine exits settle without touching your positions. Costs you a little deployed capital; buys you control over what gets closed and when. Sensible for concentrated books, illiquid assets, or strategies where a forced partial close is expensive to re-establish. * **Hold none, and converge.** Deploy everything, let the settlement service close what it must, and re-derive your target book from live venue state on the next cycle. This is what Buoy's own strategy engine does — it runs a zero buffer and reconciles every tick. It suits liquid majors and mechanical strategies where re-entering costs little. What doesn't work is deploying everything *and* assuming your positions will still be there. Pick one of the two deliberately. Other practical notes: * **Watch your vault after big NAV run-ups** — profit-taking withdrawals cluster after strong performance. * **Before going all-in on hard-to-unwind exposure**, remember every dollar of it is a dollar the auto-settlement can't reach. * **Automating your strategy?** The integration details — which value to size from, how to observe withdrawal state, and how to behave during settlement — are in [Automating a Vault Strategy](/developers/automating-a-strategy.md). --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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