Custody of Funds
Synchronicity does not custody your funds. Your money stays in your own Hyperliquid account the entire time, whether you’re trading manually or running an automated strategy. It’s the same account you’d have without Synchronicity, with no separate Synchronicity-held copy behind it. Synchronicity is a layer that can request trades on that account, nothing more. See Connect to Hyperliquid for how the connection itself is set up.
What stays with you
- Your connected wallet.
- Your Hyperliquid account and its balance.
- Your seed phrase and main wallet private key. Synchronicity never stores these and never asks for them. If any support flow or a conversation with Signac (Synchronicity’s AI trading assistant) ever asks you to paste one in, treat that as a red flag and report it.
- The decision to sign in, approve automation, or disconnect at any point.
What you approve for automated trading
To let Synchronicity trade for you, you approve a separate Hyperliquid agent wallet (also called an API wallet), a narrower credential than your main wallet, scoped to trading actions and independently revocable. Deploying a strategy puts that credential to work, letting it execute trades on your behalf. Today, the two aren’t separable: there’s no way to keep the agent wallet approved while blocking strategy delegation specifically. If you want to stop automated trading entirely, revoke the agent wallet (see Revoking access below).
Once approved, an agent wallet can:
- Create and cancel supported orders on Hyperliquid.
- Attach take-profit or stop-loss orders where supported.
It cannot:
- Withdraw or transfer funds.
- Access your seed phrase or main wallet private key.
- Trade a market Synchronicity hasn’t explicitly supported.
- Continue acting after you revoke delegation. Revocation is immediate. There’s no grace period.
Agent-wallet approval is a trading permission: orders placed through it can move your balance and change your liquidation risk, the same as if you’d placed them yourself.
The same agent wallet also handles some actions you trigger yourself in the classic trading interface: TWAP orders (time-weighted average price orders, filled gradually rather than all at once) and isolated-margin updates (adjusting how much margin backs a single position), where those are exposed as actions you take directly. Automated strategies don’t get that reach today. A strategy definition can include a leverage field and Signac can discuss one with you, but no deployed strategy submits a leverage change to Hyperliquid unattended. If that ever changes, Synchronicity will update this page and the product UI before it ships.
Separately, some order flows use Hyperliquid builder fees (a fee routed through a specific builder address). If yours does, you may also be asked to approve a builder-fee rate. That’s a fee permission, separate from custody, and it affects what you pay on supported orders. See Trading Fees for how that fee stacks with Hyperliquid’s own.
The three keys involved
Automated trading touches three distinct keys. Only one of them is sensitive to your funds directly.
- Your wallet key. Never touched by Synchronicity. Stays with your wallet provider or device.
- The Hyperliquid agent key. The execution key tied to the agent wallet you approve. Stored encrypted in Synchronicity’s backend, because the signing service has to decrypt it to sign your orders. It isn’t sent to the browser and isn’t available to Signac or to the Strategy Engine as raw key material.
- The Strategy Engine’s service key. The Strategy Engine is the system that runs your automated strategies. Its service key is used only to authenticate automated execution requests to Synchronicity’s signing service. It doesn’t touch your funds and can’t sign a Hyperliquid order on its own.
Who can access what
Because Synchronicity stores the encrypted agent key and also runs the service that decrypts it to sign orders, authorized Synchronicity team members with sufficient production database and secret access could, in principle, access or reconstruct that key. The same is true of the Strategy Engine’s service key. Any system that both stores and decrypts signing keys to operate carries this limitation. Synchronicity reserves that access for break-glass situations: security incidents, account recovery, or operational failures.
This section covers your keys specifically. For what data Synchronicity and Signac read or store more broadly, and who can see it, see Data Visibility.
Revoking access
Synchronicity provides controls to disable agent-wallet usage and revoke execution delegations. Disabling in Synchronicity is local: it stops Synchronicity from using the stored agent key through its execution path and cuts off Synchronicity’s own backend access to it.
This does not automatically remove the agent-wallet approval at Hyperliquid itself. If you want to be certain nothing can execute, also check and revoke the approval on Hyperliquid’s side.
Agent wallet states you might see
An agent wallet can show up as approved, disabled, expired, unavailable, or stale. Stale means Synchronicity’s cached record of the wallet hasn’t refreshed yet, not that anything is wrong. Before Synchronicity actually signs an order, it re-checks the wallet’s live status directly, so a stale cache never causes an order to be signed against an invalid approval.
Risk and what can go wrong
A triggered strategy doesn’t always execute cleanly. Common reasons a request can fail or get blocked before it reaches your account:
- Your session expired, or your delegation was disabled, revoked, or expired.
- The agent wallet isn’t approved, or is in one of the states above.
- Builder-fee approval is missing or insufficient where builder fees are used.
- A retried request collides with one already in flight (an idempotency conflict).
- Hyperliquid rejects the order, rate-limits the request, or is down.
None of this eliminates risk once an order does go through. Automated execution can create real market exposure, and you can lose funds because of market movement, liquidation, slippage, fees, stale signals, a misconfigured strategy, venue behavior outside Synchronicity’s control, or unavailable data or execution. Synchronicity executes the rules you configured. It does not guarantee profit, execution, avoiding liquidation, or continuous availability.
FAQ
Can Synchronicity withdraw or transfer my funds? No. The delegated strategy path (your deployed strategies executing through the agent wallet) is built only for creating and canceling supported orders.
Can Synchronicity team members access my agent key? Authorized team members with sufficient production access could, in a break-glass scenario. See Who can access what above for when that access actually gets used.
Can Signac access my private keys? No. Signac never has access to seed phrases, main wallet private keys, raw Hyperliquid agent keys, or production secrets.
Can I revoke access? Yes, in Strategy Builder. Remember to also check Hyperliquid’s own permissions if you want the approval removed at the exchange level too.
Can automated strategies change my leverage? Not today. See What you approve for automated trading above for the full picture.
Technical details
This section is a reference for technical readers who want to see exactly what gets signed. It’s not something you need to act on yourself, Synchronicity handles it for you.
Agent-wallet and builder-fee approval both use Hyperliquid’s own signed actions.
approveAgent (from Hyperliquid’s exchange endpoint docs ):
{
"action": {
"type": "approveAgent",
"hyperliquidChain": "Mainnet",
"signatureChainId": "0xa4b1",
"agentAddress": "0x...",
"agentName": "optional_name",
"nonce": 1234567890
},
"nonce": 1234567890,
"signature": {}
}approveBuilderFee (from Hyperliquid’s exchange endpoint docs ):
{
"action": {
"type": "approveBuilderFee",
"hyperliquidChain": "Mainnet",
"signatureChainId": "0xa4b1",
"maxFeeRate": "0.001%",
"builder": "0x...",
"nonce": 1234567890
},
"nonce": 1234567890,
"signature": {}
}That’s the whole payload: an address, an optional name or fee rate, and a nonce. No market scope, no action-type scope, no expiration. Synchronicity’s product-level controls enforce all of that narrower behavior in its own infrastructure before a request reaches the signing step.