> For the complete documentation index, see [llms.txt](https://docs.buoy.loan/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.buoy.loan/readme.md).

# What is Buoy?

Buoy is a **non-custodial vault platform built on Hyperliquid**. It lets anyone put their USDC to work with experienced perp traders — without ever giving up custody of their funds.

Here is the core idea:

1. A trader (called a **Leader**) creates a **Vault** and sets a performance fee.
2. Depositors put **USDC** into the vault and receive **Buoys** — the vault's share tokens.
3. The Leader trades the pooled capital on Hyperliquid's perpetual markets.
4. The vault's value (**NAV**) — and therefore the price of your Buoys — rises and falls with the Leader's trading performance.
5. Withdraw at any time: your Buoys are redeemed for USDC at the current share price.

## Why Buoy?

* **Non-custodial by design.** The Leader can trade the vault's capital, but can **never withdraw it or send it anywhere else**. Fund destinations are locked at the smart-contract level.
* **Aligned incentives.** Leaders earn a **performance fee only on new profit highs** (a high-water mark). There is no management fee — if the vault doesn't make new gains, the Leader doesn't get paid. A Leader can also commit a **minimum share of the vault** they must keep holding for anyone else to deposit — skin in the game enforced by the contract, not by a promise.
* **Fully on-chain accounting.** Your position is an ERC-20 token in your own wallet. Deposits, withdrawals, and share pricing all happen through request-based smart contracts on HyperEVM.
* **Powered by Hyperliquid.** Vault capital trades on Hyperliquid's high-performance markets — spot, the default perp DEX, and HIP-3 / HIP-4 builder-deployed markets — from the vault's own HyperCore account.

## Who is Buoy for?

* **Depositors** — you want exposure to skilled traders' strategies without managing positions yourself. Start with [Quick Start](/getting-started/quick-start.md) and the [Depositors guide](/for-depositors/choosing-a-vault.md).
* **Leaders** — you are a trader who wants to manage outside capital transparently and earn a performance fee. Start with [Creating a Vault](/for-vault-leaders/creating-a-vault.md).

{% hint style="info" %}
Buoy runs on **HyperEVM** (Hyperliquid's EVM chain). You'll need USDC to deposit and a small amount of HYPE for gas and request fees. See [Quick Start](/getting-started/quick-start.md).
{% endhint %}