Why do I say that hyperliqiud is essentially a centralized exchange 1. The client actually still needs to deposit USDC into the hyperliqiud vault contract. The client's authorization will cause the funds to be credited to the Clearinghouse account balance on the chain. When you place an order or open a position, the Clearinghouse will check and lock/reserve the required initial margin on the chain in real time. The locked margin will be withdrawn from your Clearinghouse available balance to support the order or position. And the deposited funds are not under the control of the customer; 2. The customer's pending and canceling orders are "fake on chain", and the customer's pending, canceling, and other transaction instructions are first entered into the server's transaction queue for asynchronous sorting and batch processing. Then it is asynchronously packaged into blocks, although the behavior can be seen on the chain, and the final order book status, transactions, and forced leveling can be seen on the chain with certainty and verifiability, without hidden off chain order books. In fact, it is still an off chain calculation method for on chain records, and there is no obstacle to not showing or falsifying records; 3. Order completion is exactly the same as the matching engine of centralized exchanges, with the same rules for transaction and liquidation. Essentially, it is still matching transactions on the server and asynchronously writing the transaction results to the chain. On the surface, it appears to be a fair and transparent execution on the chain, but in reality, it is still server matching; 4. Financial security: After customers deposit USDC into HLP, the funds have a lock up period (currently 4 days) and cannot be withdrawn freely at any time. In theory, hyperliquid can prohibit you from withdrawing. 5. The early Hyperliquid mainnet was launched on Arbitrarum. HyperCore is responsible for order matching and status updates, but final settlement and fund bridging rely on Arbitrarum. It can be understood as "Layer 1.5" or App chain form. Hyperliquid will only migrate to its own so-called L1 chain after 2024, and HyperEVM will be launched in 2025 to increase EVM compatibility environment. The purpose is to use the 7702 protocol, allowing ordinary users to enjoy modern experiences such as fine authorization, gas payment, and batch execution when doing more complex DeFi operations. However, this 7702 caused me to lose 310000 units. Essentially, the so-called HyperEVM chain is just a database!