Hyperliquid Moves Into Prediction Markets With HIP-4

• HIP-4 introduces outcome trading with fixed ranges, no leverage, and no liquidation risk, expanding Hyperliquid’s derivatives stack.

• Contracts stay fully collateralized from open to settlement, supporting prediction markets and limited-risk options trading.

• The upgrade opens permissionless outcome markets for builders, all settling in USDH and integrating with HyperEVM.

Hyperliquid has rolled out its HIP-4 protocol upgrade, introducing outcome trading for prediction markets and options-style contracts. The update was announced by the Hyperliquid team and is now live on testnet. The move expands Hyperliquid’s derivatives offering by enabling fixed-range, fully collateralized trading without leverage, margin calls, or liquidation risk.

HIP-4 Introduces Outcome Trading on HyperCore

The HIP-4 upgrade adds outcome trading as a new mode on HyperCore. This feature allows users to trade contracts that settle within predefined ranges. Unlike perpetual futures, these products do not rely on leverage.

Notably, the contracts remain fully collateralized from opening to settlement. As a result, traders avoid liquidation events common in leveraged markets. Hyperliquid designed the system to support prediction markets and limited-risk options.

According to the Hyperliquid team, HIP-4 builds on the momentum of HIP-3. That earlier upgrade helped drive total trading volume to $42 billion. Builders quickly launched new markets, including silver and gold, which became highly liquid on-chain contracts.

Builder Access and Permissionless Market Deployment

HIP-4 also opens the platform to third-party developers. Builders will gain access to general-purpose primitives for outcome markets. These tools allow developers to create custom prediction markets and derivative products.

Initially, Hyperliquid is testing the system on testnet. However, live deployment will follow after testing concludes. At the final stage, the platform plans to allow permissionless deployment of new outcome pairs.

All outcome markets will settle using Hyperliquid’s native stablecoin, USDH. Native Markets, the issuer of USDH, confirmed its role in settlement. The system will also integrate with Hyperliquid’s existing margin framework and HyperEVM.

Market Position and Neutrality Strategy

Hyperliquid continues to show strong market activity despite recent volatility. As of February 2, BTC open interest stood at $1.77 billion. Total open interest reached $4.97 billion across all markets.

HIP-3 markets alone reported over $1 billion in open interest and $4.8 billion in trading activity. Meanwhile, custom perpetual markets remain a key growth area.

Jeff Yan, Hyperliquid’s CEO and co-founder, emphasized platform neutrality. “The house of all finance must be credibly neutral,” Yan wrote. He cited the absence of private investors, market maker deals, and protocol fees.