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

# FAQ

A lightweight cross-cutting FAQ. Product-specific FAQs live in their own chapters.

## What is Delpho?

A Hyperliquid-native CDP and yield engine. Holders of liquid collateral mint USDV (a $1-pegged stablecoin) at collateral-specific LTVs (80% for USDC and USDT, 65% for HYPE and kHYPE) with 0% borrow APR. Yield comes from a hedged funding strategy on Hyperliquid perpetuals, captured by the protocol and routed to sUSDV stakers.

For a full primer, see [Delpho 101](/delpho-docs/delpho-101.md).

## What is the difference between USDV and sUSDV?

USDV is the stablecoin. sUSDV is the staked, yield-bearing form of USDV. A user holds USDV when they want spendable, composable dollar liquidity. They stake into sUSDV when they want exposure to the protocol's yield.

See [USDV: minting against collateral](/delpho-docs/delpho-101/usdv-minting-against-collateral.md) and [sUSDV: the yield engine](/delpho-docs/delpho-101/susdv-the-yield-engine.md).

## Where does the yield come from?

From perpetual funding payments on Hyperliquid. When traders crowd into leveraged longs, longs pay shorts. Delpho's hedged position holds the short side and captures that payment.

The yield is variable. It is not a fixed coupon. In sustained negative-funding windows it can fall to zero. See [Funding rate risk](/delpho-docs/risk/funding-rate-risk.md).

## What collateral is accepted?

At launch: HYPE, kHYPE, USDC, USDT. BTC, ETH, and selectively tokenized spot equities later.

See [Parameters](/delpho-docs/parameters.md) for current values.

## Is the borrow really 0% APR?

Yes. Delpho does not charge ongoing borrow interest. The economics that would normally fund borrow APR come from the hedged position's funding capture, which flows to sUSDV stakers.

## What happens if HYPE moves a lot?

A HYPE deposit at the maximum mint has roughly 18% of headroom before liquidation occurs. If a position crosses the threshold, the treasury absorbs it rather than an external auction. You pay a total liquidation penalty of about 10%: 9% to the treasury, a capped 1% to whoever calls the permissionless liquidate function. You keep the rest of your collateral.

Opting into auto-deleverage keeps you out of liquidation entirely: the protocol unstakes your sUSDV and repays your debt as your LTV approaches the threshold.

See [Liquidations](/delpho-docs/how-delpho-works/liquidations.md) and [Manage your borrow position](/delpho-docs/using-delpho/manage-your-borrow-position.md).

## What happens if Hyperliquid funding goes negative?

For sUSDV holders: yield can compress to zero. At V1, the treasury reserve absorbs short-term gaps; the protocol does not borrow against future earnings to maintain a quoted yield. Hedge inversion and a programmatic yield-distribution pause are planned for future releases.

For USDV holders: USDV is structurally separated from this. The peg defense lives in the redemption ladder and the treasury reserve.

See [Funding rate risk](/delpho-docs/risk/funding-rate-risk.md).

## Is Delpho audited?

Yes. The smart-contract layer has been audited by Sherlock. The audit covered the USDV mint contracts, sUSDV staking, the hedge orchestrator, and the CoreWriter integration. The protocol also works with StableWatch on ongoing quantitative risk modeling.

See [Audits and security](/delpho-docs/audits-and-security.md).

## Where can I read more?

The long-form essay version of the protocol thesis is the *Delpho Explained* series:

* Part 1: The Basics
* Part 2: The Yield Engine
* Part 3: The Risk Architecture
* Part 4: Composability and the Productive-Money Thesis (forthcoming)