HIP-4
HIP-4 is one of the most important upgrades introduced to Hyperliquid. Officially focused on “Outcome Markets,” the proposal expands Hyperliquid beyond perpetual futures into event-driven trading markets.
The proposal introduced outcome contracts, which are binary-style financial instruments tied to whether a specific event happens. These contracts trade between 0 and 1, where the market price represents the implied probability of the outcome occurring.
One of HIP-4’s biggest differences from perpetual futures is that all positions are fully collateralized. Traders fund positions upfront, so the system does not rely on leverage or liquidation mechanisms. This reduces liquidation risk and simplifies settlement.
Outcome contracts run directly on HyperCore, Hyperliquid’s native execution layer. They use the same matching engine, order book infrastructure, and account system already used for perpetual and spot trading.
HIP-4 also introduced merged YES and NO order books. Instead of splitting liquidity across separate markets, the system combines opposing liquidity into one shared structure to improve market efficiency.
The first HIP-4 market launched as a recurring Bitcoin outcome contract that settles daily using Hyperliquid BTC mark prices. Additional event markets and multi-outcome structures are expected to expand over time. HIP-4 is part of Hyperliquid’s broader vision of becoming a unified execution layer capable of hosting many kinds of financial markets on one infrastructure.
Why It Matters
HIP-4 expands Hyperliquid from a perpetual futures platform into a broader event-driven trading ecosystem. It introduces fully collateralized outcome contracts directly into HyperCore’s on-chain trading infrastructure.
The proposal is important because it combines prediction-market mechanics, blockchain composability, and professional trading infrastructure within a single execution environment.
How do outcome contracts work in HIP-4?
Outcome contracts trade between 0 and 1 depending on the probability of a real-world event happening. Traders buy YES or NO positions tied to a specific outcome.
If the event happens, YES settles at 1 while NO settles at 0. If the event does not happen, the reverse occurs. Settlement is handled automatically using predefined oracle or market-resolution rules.
Because contracts are fully funded upfront, users cannot lose more than their deposited collateral. The system avoids the liquidation mechanics common in leveraged perpetual futures trading.
What makes HIP-4 different from traditional prediction markets?
HIP-4 runs directly inside HyperCore using the same infrastructure as Hyperliquid’s perpetual and spot markets. Outcome contracts share the same order book systems, matching engine, and account structure.
The proposal also emphasizes composability. Traders can combine event-based positions with perpetual futures exposure inside one account instead of managing separate platforms.
Another difference is the merged YES/NO liquidity structure. This design helps reduce fragmentation and improves liquidity efficiency compared to isolated market books.
Why is HIP-4 important for Hyperliquid’s long-term vision?
Hyperliquid’s broader goal is to become a unified financial execution layer supporting many market types on the same infrastructure. HIP-4 expands the platform beyond crypto perpetuals into event-driven financial products.
The proposal also creates new opportunities for builders, market creators, and traders inside the ecosystem. Developers can build prediction-style applications while still using HyperCore’s existing trading infrastructure.
Additionally, HIP-4 strengthens demand for HYPE staking because builders must stake substantial HYPE amounts to deploy markets.
Real-World Example
A trader believes Bitcoin will close above $120,000 before the end of the week. Using a HIP-4 outcome market, the trader buys YES shares trading at 0.65.
If Bitcoin closes above the target price, the contract settles at 1 and the trader profits from the difference. If it does not, the position settles at 0.
HIP-4 and FinFeedAPI
FinFeedAPI’s Prediction Market API provides access to trades, quotes, order books, market activity, and historical data across prediction-market-style ecosystems similar to HIP-4 outcome markets. Developers can use this data to analyze implied probabilities, liquidity conditions, and event-driven trading behavior over time.