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Why Notional?

Notional combines the speed of centralized exchanges with the security of DeFi through hardware-based security (Trusted Execution Environments).
What You Get:
  • Sub-10ms execution - Hyperliquid-level speed with added margin
  • No front-running - Orders stay private until execution (hardware-encrypted memory)
  • Full transparency - All trades recorded on immutable blockchain, independently verifiable

Speed

5,000 TPS capacity with <10ms added latency over direct Hyperliquid access

Finality

Optimistic updates for instant feedback + blockchain settlement for security

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How It Works

Notional runs inside a Trusted Execution Environment (TEE) - hardware that encrypts all memory and computation. Think of it as a black box that:
  1. Executes trades at exchange-level speeds
  2. Keeps your orders private until execution (no front-running)
  3. Proves it’s running legitimate code via cryptographic attestation
  4. Cannot be tampered with by the host, cloud provider, or even Notional operators
Every action (deposits, orders, fills, liquidations, withdrawals) is recorded as an immutable transaction on Notional’s Layer 2 blockchain. This creates a complete audit trail that anyone can verify.

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Security Model

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Trusted Execution Environment (TEE)

A TEE is a secure area of a processor that provides:
  • Hardware-encrypted memory - CPU encrypts RAM contents, host cannot read
  • Isolated execution - Cloud provider (Azure) cannot inspect or modify the TEE
  • Remote attestation - Cryptographic proof the system is running unmodified code
  • Secure key management - Trading keys released only to verified TEEs
Notional uses AMD SEV-SNP (Secure Encrypted Virtualization) on Azure Confidential VMs. The host cannot read VM memory, inject code, or modify execution.
Why This Matters for Traders:
  • Orders remain private until execution (encrypted memory)
  • No front-running by operators or infrastructure
  • Provably running correct code (attestation)
  • Higher capital efficiency with borrowed margin

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Speed vs Security Tradeoff

Notional uses a dual finality model that balances instant feedback with blockchain security: Optimistic Layer (Instant):
  • Unconfirmed fills applied immediately for <10ms responsiveness
  • Updates positions and PnL in real-time
  • Never affects withdrawable balances - can’t withdraw based on unconfirmed fills
  • Reconciled against blockchain within ~1 second
Finalized Layer (Secure):
  • All Hyperliquid events (fills, deposits, withdrawals) confirmed on-chain
  • Withdrawals only use blockchain-confirmed balances
  • Internal operations (borrows, liquidations) finalize on commit
This dual-layer approach gives you exchange-like UX with blockchain-grade security.

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Transparency & Verification

Immutable Event Log: Every state change is recorded with:
  • Global sequence number (total ordering)
  • Timestamp and event type
  • Full event payload
  • Hash chain linking to previous events
Anyone Can Verify:
  1. Download the transaction log
  2. Replay all events from genesis
  3. Verify the reported state matches your computation
  4. Check TEE attestation to confirm hardware security
Crash Recovery: If the system crashes, it automatically recovers by replaying the transaction log from the last checkpoint. Zero data loss, no manual intervention required.
For a deeper technical dive, see Protocol Risks for threat model analysis and security boundaries.

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Next Steps

Protocol Risks

Threat model and security analysis

Collateral System

Multi-asset margin and risk management

Interest Rate Model

Dynamic interest rates for borrowed margin

Liquidations

Automated liquidation process