Hyperliquid HIP-4 outcome trading introduces a new contract type on the Hyperliquid platform. Hyperliquid HIP-4 outcome trading allows fully collateralized contracts that expire at a fixed time. These contracts settle based on predefined outcomes. The system expands Hyperliquid’s on-chain trading model beyond perpetual futures.
How Hyperliquid HIP-4 Outcome Trading Works
Hyperliquid operates as a Layer-1 blockchain and a decentralized exchange. Its trading engine is called HyperCore. Before HIP-4, the platform focused mainly on perpetual futures. Hyperliquid HIP-4 outcome trading adds expiring contracts that are funded upfront. All collateral is posted at trade entry. No margin calls are used. No liquidations occur during the contract lifecycle.
Contracts created under HIP-4 settle using objective price data at expiration. Outcomes can resolve to values between zero and one. This structure allows traders to express probabilistic expectations. Settlement occurs automatically at expiry.
Hyperliquid HIP-4 Outcome Trading and Prediction Markets
Hyperliquid HIP-4 outcome trading supports prediction-style markets without binary outcomes. Contracts can reflect partial confidence instead of yes-or-no results. Prices adjust continuously based on market activity. This design differs from traditional binary prediction markets.
Outcome trading also enables price-range-based contracts. These contracts cap payouts within defined upper and lower bounds. The structure limits risk to the collateral posted at entry. Losses cannot exceed the funded amount.
Platform Integration and Development Status
Hyperliquid HIP-4 outcome trading integrates with existing Hyperliquid systems. These include portfolio margin strategies and HyperEVM. Developers can build composable applications and multi-leg strategies using outcome contracts. Event-based products can also be created on top of the new primitive.
HIP-4 outcome trading is currently available on testnet. This phase allows users and developers to experiment with contract design and settlement behavior. Hyperliquid plans to introduce canonical markets after testing concludes. These markets will use standardized parameters.
At launch, outcome trading contracts will be denominated in USDH. USDH is Hyperliquid’s native stablecoin. Future phases may allow permissionless market creation depending on usage and feedback. The HIP-4 announcement coincided with increased activity around the HYPE token.
Source: https://nftnewstoday.com/2026/02/04/what-is-hyperliquid-hip-4-a-deep-dive-into-outcome-trading
