What is HIP-4? Prediction Markets Come to Hyperliquid

The short version

HIP-4 is a protocol upgrade that adds outcome trading to Hyperliquid. Think Polymarket, but running on the same engine that processes $200B+/month in perpetual futures volume.

Markets are fully collateralized contracts that settle between $0 and $1. Buy a share at 65¢, and you get $1 if the outcome happens — a 54% return. If it doesn’t happen, you get $0.

Why this is different

Most prediction markets are standalone platforms. HIP-4 is embedded directly into Hyperliquid’s trading engine, which means:

• Shared margin — your prediction market positions share collateral with your perp and spot positions
• Same matching engine — sub-second fills, same orderbook depth as Hyperliquid perps
• On-chain orderbook — every order, fill, and cancellation is verifiable on Hyperliquid’s L1
• No popups — agent-based signing means you approve once, then trade instantly

Market types

HIP-4 supports three types of markets:

Binary — simple yes/no questions. “Will BTC close above $95k today?”

Multi-outcome — questions with multiple possible answers. “What will Hypurr eat for dinner?” with outcomes like Akami, Otoro, Canned Tuna.

Recurring — auto-rotating price binaries that reset on a schedule (15m, 1h, 1d). Think of them as very short-term binary options.

How shares work

Every market has two sides that sum to $1. If “Yes” is trading at 70¢, then “No” is automatically at 30¢.

When you buy Yes at 70¢ and the outcome happens, you receive $1 per share — a profit of 30¢ per share. The price IS the probability (roughly).

The engine mints shares on demand. There’s no fixed supply — when a buyer and seller match, the system creates new shares. On resolution, winning shares redeem at $1 and losing shares at $0.

Current status

HIP-4 is live on Hyperliquid’s testnet. Mainnet launch date hasn’t been announced yet, but the team has indicated it’s coming soon.

We’re building Purrdict to be the best way to trade these markets. Try it on testnet or join the waitlist to get early access when mainnet launches.

Want to go deeper? Read our full HIP-4 technical breakdown or learn how to trade prediction markets.