UseFelix Common Questions

UseFelix is a next-generation financial account built on top of HyperLiquid, a high-performance Layer 1 blockchain. The fundamental problem it addresses is fragmentation. Most traders juggle three or four separate platforms to trade spot equities, manage perpetual futures positions, earn yield on idle stablecoins, and handle collateral borrowing. That inefficiency wastes both time and money.

The UseFelix platform consolidates all of that into one unified interface. You deposit stablecoins, trade tokenized US equities and perps, lend your holdings to earn interest, or borrow against them — all without switching applications or bridging funds between chains.

feUSD is the native stablecoin issued by UseFelix. It is a CDP (collateralized debt position) stablecoin, which means users mint feUSD by locking approved collateral assets — primarily crypto and tokenized equities held on HyperLiquid.

The peg is sustained through a combination of over-collateralization requirements, liquidation mechanisms triggered when collateral ratios fall below minimum thresholds, and protocol-level redemption logic. When feUSD trades below $1 on open markets, arbitrageurs can redeem it at face value against protocol collateral, pushing the price back toward parity. This is a well-proven design, structurally similar to what MakerDAO pioneered with DAI, adapted for HyperLiquid's settlement layer.

Spot equities on UseFelix are tokenized assets backed by real securities held in custody. Purchasing NVDA or AAPL through the platform gives you economic exposure to those stocks — including price movements and corporate actions — but the tokens are not actual shares registered with a broker.

Settlement happens on HyperLiquid's infrastructure, meaning trades clear in seconds rather than through the T+2 cycle of traditional equity markets. The platform currently lists dozens of tickers, including large-cap tech names, ETFs such as SPY, QQQ, and IWM, and sector-specific products like SOXX and SOXL. Extended overnight trading sessions provide access beyond standard NYSE hours.

The disclaimer UseFelix displays is important: these tokenized assets provide economic exposure, not legal share ownership.

Security is a legitimate concern for any on-chain protocol that holds user funds. UseFelix's contracts are built on HyperLiquid, which has its own security model distinct from Ethereum mainnet or Polygon. Before committing significant capital, users should review the official documentation linked in the platform's footer and check for any published audit reports.

As with any DeFi product, risks include smart contract vulnerabilities, liquidation during volatile market conditions, and oracle failures that could affect collateral pricing. Over-collateralization helps absorb price shocks but does not eliminate risk entirely. The team behind UseFelix has disclosed these risks in their terms of service. Read them.

The protocol accepts several asset classes as collateral for borrowing. Crypto assets supported on HyperLiquid — including major tokens — can be deposited. Tokenized spot equities held through UseFelix may also serve as collateral in certain configurations.

Each collateral type carries its own loan-to-value (LTV) ratio. More volatile assets receive lower LTV limits, meaning you can borrow less against them relative to their value. Stablecoins typically carry higher LTVs. The specific ratios are determined by protocol governance and are subject to change. Always verify current parameters in the app before opening a borrow position.

Lenders deposit assets into UseFelix's lending pools. Borrowers draw from those pools and pay interest. That interest is returned to lenders, minus any protocol fee.

Yields are variable — they fluctuate with utilization rates. When a pool is highly utilized (meaning most deposited capital is currently borrowed), interest rates climb to attract more lenders and discourage additional borrowing. When utilization is low, rates decline. This is a standard model, comparable to how Aave's interest rate curves function. No fixed APY is guaranteed. Returns depend entirely on market conditions at any given moment.

Yes. UseFelix provides access to perpetual futures markets through its trading interface. Perps on the platform settle in USDC and are powered by HyperLiquid's underlying orderbook. You gain access to a range of crypto perp markets without requiring a separate account on a centralized exchange.

Funding rates apply, as they do across all perpetual products. Long positions pay shorts (or vice versa) depending on whether the perp trades above or below the spot index. The UseFelix interface shows current funding rates and session details so you know exactly what you are paying or earning to hold a position overnight.

UseFelix runs a points program accessible from the main navigation. Points accumulate through protocol usage — trading, lending, borrowing, and holding feUSD all contribute to your balance.

The strategic reason to pay attention to points is clear: many DeFi protocols convert point balances into token allocations at launch or during retroactive distribution events. UseFelix has not made formal commitments about this, but historically, protocols running points programs tend to reward early, active participants. Engaging now costs nothing extra if you are already using the platform.

Visit https://use-felix.net and click "Sign in" in the top-right corner. The platform integrates with popular Web3 wallets. Once connected, you can deposit USDC to begin trading or providing liquidity.

New users should start with the portfolio view to understand their current balances, then explore the trade tab to see available markets. The lending and borrowing sections are clearly labeled in the sidebar. If you are new to on-chain finance, begin small. Learn the liquidation mechanics thoroughly before opening leveraged positions or taking on debt.

Traditional brokerages do not offer 24/7 trading, on-chain settlement, or the ability to borrow against equity holdings at the protocol level and immediately redeploy that capital into a perp position. That combination is genuinely novel.

On the other hand, traditional brokerages are regulated, insured (SIPC covers up to $500,000 in certain cases), and offer legal share ownership. UseFelix provides none of those protections. The decision depends on what you value: speed and composability, or regulation and recourse. For many traders, the answer is both — use a broker for long-term holdings and UseFelix for active trading and yield strategies that traditional finance simply cannot offer.

Fee structures on UseFelix vary by activity. Spot equity trades carry a spread and potentially a protocol fee on execution. Perp trading fees depend on whether you are a maker or taker on the underlying HyperLiquid orderbook. Borrowing costs are interest-based rather than flat fees — you pay the prevailing borrow rate continuously until the debt is repaid.

Network fees on HyperLiquid are substantially lower than on Ethereum mainnet, which is a key reason the UseFelix platform chose this infrastructure. Gas costs that would make small trades unviable on Ethereum are negligible here. Check the app for current rate breakdowns before executing large transactions.

Geographic availability depends on UseFelix's terms of service and any applicable regulatory restrictions. Certain features — particularly tokenized US equities — may not be accessible in all jurisdictions. The platform's terms and any geo-blocking in place reflect these constraints.

Users in restricted regions who attempt to access blocked features via VPN do so at their own risk and in potential violation of the platform's terms. This is not legal advice. Review the terms of service and consult applicable local regulations before using the platform in jurisdictions with complex crypto laws.

Aave operates primarily on Ethereum and several EVM-compatible chains including Polygon. It is a battle-tested protocol with billions in TVL and multiple security audits spanning several years. UseFelix is newer and built on HyperLiquid, which is not EVM-based in the traditional sense.

The critical distinction is scope. Aave is a lending protocol. UseFelix's protocol combines lending with spot equity trading, perpetual futures, and a native stablecoin under one roof. That breadth is a feature, but it also means more moving parts. Aave users who prefer simpler, audited lending with deep liquidity may be better served staying on Ethereum. Traders who want an integrated account spanning equities, crypto, and fixed-income yield in a single interface will find UseFelix considerably more useful.

Liquidation. If your collateral value drops below the minimum ratio required to back your borrowed amount, the protocol will liquidate part or all of your collateral to repay the debt. This process is automatic and can unfold rapidly during sharp market moves.

To avoid liquidation, keep a close eye on your health factor in the UseFelix interface. Add collateral or repay debt if the ratio approaches dangerous levels. Setting price alerts for volatile collateral assets is a sensible precaution. The protocol does not issue a warning before liquidating — it is code, not a margin desk. Understand this fully before taking on debt.