Hyperliquid Portfolio Margin: Borrowing, Collateral, and Liquidation Risk
Summary
The document explains Hyperliquid portfolio margin, which combines eligible spot collateral and cross-margin perpetual positions in one account. HYPE and BTC collateral support borrowing in USDC according to asset-specific loan-to-value ratios. Borrowing occurs automatically for trading, deposits and realized profits repay debt, and idle USDC is supplied to earn yield. The guide also defines measures such as portfolio margin ratio, net balance, available balance, and health factor, and gives examples of how weighted collateral value relates to borrowing capacity.
The material describes operational limits and liquidation risks rather than presenting a trading performance study. Borrowed funds cannot be withdrawn or transferred, interest accrues continuously, and borrow or supply caps can constrain protection or withdrawals. A portfolio margin ratio at or above 95% makes the account liquidatable; the liquidation sequence between spot collateral and perps is not deterministic. The guide distinguishes partial and full borrow liquidations and illustrates how falling collateral prices can cross their thresholds. These mechanics make collateral volatility, outstanding debt, interest, and oracle updates important risk factors.
Key ideas
- Portfolio margin combines eligible spot collateral and cross-margin perps within one account.
- HYPE and BTC collateral support automatic USDC borrowing subject to loan-to-value limits.
- Deposits and realized profits repay outstanding borrowing, while idle USDC is supplied for yield.
- The portfolio margin ratio tracks liquidation risk, and a ratio of at least 95% can trigger liquidation.
- Liquidation order is not deterministic, and collateral price declines can trigger partial or full debt liquidation.
- Borrow and supply caps, accrued interest, and withdrawal limits affect account risk.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.