> For the complete documentation index, see [llms.txt](https://doc.monetrix.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.monetrix.xyz/monetrix-pilot/product/self-custody.md).

# Why self-custody matters

Democratizing professional strategy management is only useful if users can access it without giving up control of their capital.

## The limitation of vault-based products

Most onchain yield products require users to deposit assets into a vault or protocol contract. This can introduce:

* Smart-contract implementation risk
* Upgrade, governance and admin-key risk
* Withdrawal restrictions
* Additional audit and legal-review requirements
* Concentration limits for large allocations

For individuals, these risks may reduce trust. For whales, funds and treasuries, they can directly limit allocation size.

## The Pilot model

Pilot delivers professional management through Hyperliquid-native account permissions while assets remain in a user-controlled account.

* No Monetrix deposit contract is required
* Monetrix receives trade-only access
* Monetrix cannot withdraw or transfer assets
* Authorization is revocable by the user
* Positions and activity remain visible at the account level

## Recommended account structure

The preferred setup is a new Hyperliquid subaccount created exclusively for Pilot.

A new account establishes a known clean state and prevents unrelated positions, orders or balances from interfering with the strategy.

The dedicated subaccount:

* Remains under the user's main wallet
* Has its own balances and trading history
* Is used only for Pilot
* Must not be used for manual trading while Pilot is active

## Fallback: connected wallet

If the user cannot create a subaccount, the connected wallet may be used after Monetrix verifies that it has:

* No conflicting positions
* No open orders
* No non-USDC balances
* No activity that may interfere with Pilot

The connected wallet must remain dedicated to Pilot while the service is active.

## API wallet permissions

Monetrix can:

* Place and cancel strategy orders
* Open and close positions
* Rebalance the strategy
* Reduce risk when HF approaches the warning line

Monetrix cannot:

* Withdraw assets
* Transfer assets
* Take ownership of the account