How AINDEX Funds work

Each Fund is one contract. On Hyperliquid the contract is itself the Fund’s trading account; on Lighter the contract, on Ethereum, owns one Lighter account. The manager trades it through a trading key. Depositors hold shares of the whole account, all at one share price.

There is no owner and no upgrade: a Fund is a copy of a contract that cannot change. Money leaves it only as withdrawals, to the wallets that deposited.

Both are requests, not instant trades. A request joins the open batch. The next settlement closes that batch, and the one after prices it, so your request is priced at a share price nobody could see or choose when you sent it. Every deposit and withdrawal in a batch gets the same price.

Until your request is priced you can cancel it. Withdrawals are paid from the Fund’s cash and that batch’s deposits; if that is not enough, every withdrawal in the batch is filled by the same part and the rest of your shares come back to you. Money waiting for a claim or a price is never counted in the Fund’s value and can never be sent to the venue.

The only fee on a Fund’s money is a share of each depositor’s own gain, over their own high. Your mark starts at the price you came in at. While the share price is at or under your mark you pay nothing. Above it, the Fund’s fee rate applies to the gain, paid in shares, and your mark moves up to that price. Someone who joined at a lower price pays on their own gain; someone who joined at the top pays nothing until the price passes it.

The fee is only ever taken at a settled price, never a live one. It is split between the manager and AINDEX, in shares fixed when the Fund is made. A manager can lower the rate; nobody can raise it.

Settling costs gas, and nobody is paid to keep a Fund running, AINDEX included. So each request pays a small flat fee, shown before you sign, and it goes to whoever settles the batch: half to the one who proposed, half to the one who finalised.

A manager can still lose the Fund’s money by trading badly, or on purpose, against another account of their own in a thin market. The breaker is what bounds that.

Each Fund has a largest drop, set when it is made. Once the share price is that far under its highest settled price, anyone can trip the breaker. It revokes the trading key and puts the Fund in exit only, for good: no new deposits and no trading. Withdrawals keep working, and anyone can close the Fund’s positions and bring its cash home, without the manager or AINDEX. Value hidden where it should not be (another trading venue, a vault, staking or lending on Hyperliquid) trips it too.

A pooled Fund’s record is its share price over time, at every settlement and reading. Deposits and withdrawals buy and sell shares at that price, so they never move the return. It is after every cost the account paid: venue fees, funding and gas.

AINDEX’s own Funds that are not pooled yet show the record of the account that trades them, read about every fifteen minutes, with every fill as a CSV and the accounts to check on each venue. The same data is in the public API: Build on AINDEX.

A Fund can lose money, quickly, and you can lose all of what you put in. A past record does not promise a future one, and a short record says almost nothing. Perp positions can be liquidated. Each venue and chain has its own risks: outages, delays and faults in their code. The contracts are new and not audited, and on Lighter the value rests on AINDEX’s reports. Nothing here is investment advice. Risks and limits has the rest.