HIP-3 Perpetual Markets: Deployment, Settlement, and Risk Controls
Summary
The document explains Hyperliquid’s permissionless framework for deploying perpetual futures markets. A deployer defines each market and its oracle, operates it by setting prices and leverage limits, and can halt trading to cancel orders and settle positions at the current mark price. Markets use HyperCore margining and order books, while each deployed exchange has independent settings and margining. The specification also describes staking, collateral choices, deployment auctions, and potential fee sharing.
The main risk controls include validator voting to slash stake for irregular inputs that harm protocol correctness, uptime, or performance; eligibility standards for enabling cross margin; and onchain backstop liquidators for certain liquidatable positions. The document cautions that oracle quality and contract design require careful diligence, and cross margin is irreversible once enabled. It presents slashing as a rollout safeguard that may not be needed if the system works as intended, but the outcomes remain subject to validator decisions. These are protocol rules and design intentions, not evidence of trading returns or proof that markets will be risk-free.
Key ideas
- Deployers define and operate markets, including their oracle, pricing, and leverage parameters.
- Each deployed exchange has its own margining, order books, and deployer settings.
- Deployers can halt a market to cancel orders and settle positions at the current mark price.
- Validator votes can slash stake for irregular actions that damage protocol operation.
- Cross margin requires eligible assets and cannot be reversed after activation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.