Hyperliquid Priority Fees for Data Access and Order Placement
Summary
The document explains two fee mechanisms for trading on Hyperliquid: gossip priority for receiving network data and order priority for sending eligible orders. Gossip priority uses recurring Dutch auctions for IP slots; winning slots can improve peer ordering for incoming data, subject to IP matching, network hops, node configuration, and auction timing. The documentation reports an empirical latency reduction of about 25 milliseconds per gossip slot.
Order priority applies to specified IOC and ALO orders. IOC fees can improve transaction ordering, with the fee affecting timing and, at higher levels, tie-breaking within short time buckets; cancels retain priority. ALO fees instead affect queue position over a continuous 400-millisecond window and are charged when an order is placed, whether or not it fills. The described latency and ordering effects are network-specific and variable, and fees are burned. Order eligibility and fee source differ by order type, so the mechanism is relevant to execution and market making rather than trade direction.
Key ideas
- Gossip priority auctions can influence the ordering of incoming data, while order priority affects outgoing order handling.
- Gossip priority depends on matching the bid IP to the peer-observed IP and on network nodes honoring the ordering.
- IOC priority fees affect temporal ordering and can break ties among orders received close together.
- ALO priority fees alter queue position over a continuous window and are charged when the order is placed.
- Reported latency benefits are empirical and subject to network conditions; fees are burned.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.