diff --git a/.changeset/large-hornets-bet.md b/.changeset/large-hornets-bet.md
new file mode 100644
index 000000000..e51afe721
--- /dev/null
+++ b/.changeset/large-hornets-bet.md
@@ -0,0 +1,5 @@
+---
+'@relayprotocol/relay-kit-ui': patch
+---
+
+Implement AGW logic when hyperliquid is selected as destination
diff --git a/packages/ui/src/hooks/useIsWalletCompatible.ts b/packages/ui/src/hooks/useIsWalletCompatible.ts
index e9f943e3c..a685dfd56 100644
--- a/packages/ui/src/hooks/useIsWalletCompatible.ts
+++ b/packages/ui/src/hooks/useIsWalletCompatible.ts
@@ -34,9 +34,10 @@ export default (
       return true
     }
 
-    //Hyperliquid operates as a CEX, so there's no need to check for wallet compatibility
+    // Hyperliquid operates as a CEX, so wallet compatibility checks are skipped.
+    // AGW recipients are still incompatible with Hyperliquid deposits.
     if (chainId === 1337) {
-      return true
+      return !isRecipientAGW
     }
 
     if (!linkedWallet) {