Credit Account

Purpose

Each borrower deploys a dedicated Credit Account smart contract on HyperEVM. It:

Holds the user’s deposited margin and borrowed funds as a smart wallet.
Executes swaps and other HyperEVM interactions while keeping collateral inside the account.
Enables “undercollateralized” usage relative to the initial deposit, while remaining overcollateralized within the account because borrowed funds never leave it.
Enforces a health check: swaps or withdrawals execute only if the post-trade Health Factor stays above 1.

Permitted assets

A Credit Account is scoped to a single market. It may only hold the market’s collateral tokens plus its debt token. Example: if a market allows borrowing USDC against uBTC and HYPE, that Credit Account can only hold uBTC, HYPE, and USDC. Restricting the asset universe simplifies risk management.

Health Factor

An account is liquidatable when

HF < 1

. Define, at time

t

$Q_i(t) >= 0$ : quantity of asset $i$ .
$P_i(t) > 0$ : price of asset $i$ .
$LT_i \in (0,1)$ : liquidation threshold of asset $i$ .
$d(t) >= 0$ : outstanding principal debt.
$b(t) >= 0$ : accrued interest.

Total collateral value

V

and obligation

O

V(t) = \sum_{i=1}^n Q_i(t)P_i(t)LT_i, \quad O(t) = d(t) + b(t)

Health Factor:

HF(t) = \frac{V(t)}{O(t)} = \frac{\sum_{i=1}^n Q_i(t)P_i(t)LT_i}{d(t)+b(t)}

Introduction

Protocol

Token

Purpose

Permitted assets

Health Factor

Introduction

Protocol

Token

​Purpose

​Permitted assets

​Health Factor

Purpose

Permitted assets

Health Factor