What Is Hyperliquid HIP-3? Builder-Deployed Perpetual Markets Explained

HIP-3 expands who can list perpetual contracts on Hyperliquid. Instead of every market being defined and operated through the original validator-run perpetual DEX, an outside builder that meets the protocol requirements can launch its own DEX and add markets under that deployment.

That makes the listing process more open, but it does not make every HIP-3 market identical. Traders still use Hyperliquid's native order-book infrastructure, while the market deployer controls several inputs that directly affect the contract. Evaluating the deployer and market specification is therefore part of evaluating the trade.

How does Hyperliquid HIP-3 work?

The official HIP-3 specification currently states that a mainnet deployer must maintain 500,000 HYPE and may deploy one perpetual DEX. The document says this requirement is expected to decrease as the infrastructure matures, so treat 500,000 HYPE as a current rule rather than a permanent constant. Required stake remains locked for a period after the deployer's markets have been halted.

A deployer's first three assets do not require participation in the perpetual deployment auction. Additional listings use the shared Dutch-auction process described by the protocol. These are deployer requirements; ordinary traders do not need to stake 500,000 HYPE to trade a HIP-3 market.

How is HIP-3 different from regular Hyperliquid perps?

The shared execution layer is the main similarity. HIP-3 assets can be traded through the same general HyperCore actions, and they receive native order books and margining. The main difference is governance at the market level: a builder, not just the base protocol, is responsible for the product's design and continued operation.

Can HIP-3 support stocks, commodities and other markets?

HIP-3 is general enough for builders to create perpetual exposure to markets beyond standard crypto assets, provided they can define a meaningful contract and a reliable, manipulation-resistant price source. That can include markets referencing equities, equity indexes, commodities or other economically significant underlyings. The available listings change over time, so the live interface is the source of truth for what can actually be traded.

Non-crypto reference markets add practical questions. The underlying venue may close while the perpetual order book remains available, price discovery can weaken outside primary market hours, and corporate actions or index changes may require special handling. Traders should read the market annotation and deployer documentation rather than inferring the contract from its ticker alone.

Who controls a HIP-3 oracle and mark price?

The HIP-3 deployer defines the oracle and is responsible for market operation. It may designate a separate oracle-updater address, but that does not remove the deployer's responsibility for the market. Official developer documentation expects oracle updates approximately every three seconds and includes safety constraints on submitted price changes.

The mark-price update can use deployer-supplied mark inputs together with a local mark derived from the best bid, best ask and last trade. The protocol applies clamps, and if updates become stale it can fall back to the local mark after ten seconds. The documentation explicitly says that fallback should not be relied on by deployers.

Oracle quality matters because oracle and mark data influence funding, margin and liquidation. A liquid order book cannot repair a poorly specified reference index, a delayed feed or ambiguous treatment of market closures. For a HIP-3 trade, examine what the contract tracks, how the reference price is formed and who operates the updater.

What collateral and margin do HIP-3 markets use?

Each HIP-3 DEX has its own collateral token, margining, order books and deployer settings. Hyperliquid's unified-account mode can present one balance for an eligible asset across compatible DEXs, but that interface convenience does not make every contract share the same collateral or risk parameters.

At the asset level, a deployer selects a margin mode and margin table. Some markets can be isolated-only. Cross margin may be enabled for eligible assets, but the official HIP-3 rules state that enabling it is irreversible and subject to validator-enforced standards for observable liquidity, external oracle reliability and resistance to manipulation.

How do HIP-3 fees and growth mode work?

A user's rolling fee tier applies across Hyperliquid assets, including HIP-3 perpetuals. The effective fee on a particular HIP-3 market can still differ because the deployer may configure an additional fee scale. The current official range for that scale is 0% to 300% of the base user rate, or 0% to 100% when that asset is in growth mode.

Growth mode reduces protocol fees, rebates, volume contributions and L1 user rate-limit contributions by 90% for the enabled HIP-3 asset. It is a market-level setting, not a promise that every cost is 90% lower. The deployer fee scale, account tier, order type and eligible discounts still affect the actual maker or taker rate.

How do funding and liquidation work on HIP-3?

HIP-3 contracts are perpetuals, so funding transfers help keep the contract near its reference price and mark-price-based margining can liquidate an undercollateralized position. The deployer can configure a funding multiplier and an interest-rate component within protocol limits, which means two HIP-3 markets need not produce the same funding behavior even when their displayed prices look similar.

Funding is separate from trading fees. It changes account equity over time and can move a leveraged position closer to liquidation. Review the current rate, payment interval shown by the platform, margin mode and liquidation estimate before entering; do not copy assumptions from a validator-operated crypto perpetual into a builder-deployed contract.

Can a HIP-3 market be halted or settled?

Yes. The deployer can use the protocol's halt action to cancel open orders and settle positions at the current mark price. The same mechanism can later resume trading and recycle an asset slot, which the official specification notes can support dated contracts.

Settlement at mark price is not the same as closing through the order book at a chosen limit price. Before trading a market tied to an expiring instrument, corporate event or other special condition, understand when settlement may occur and how the deployer defines the reference price.

What are the main risks of Hyperliquid HIP-3 markets?

• Deployer risk - the builder controls the contract definition, oracle operation and several market settings.
• Oracle risk - a delayed, ambiguous or manipulable reference price can affect funding, mark price and settlement.
• Liquidity risk - thinner books can create wider spreads, slippage and more difficult liquidation execution.
• Leverage risk - adverse mark-price moves and funding debits can liquidate the collateral supporting a position.
• Collateral risk - the DEX's chosen quote asset may add depeg, liquidity or access risk.
• Settlement risk - the deployer can halt trading and settle at the current mark under the protocol rules.
• Specification risk - a ticker may hide differences in index construction, hours, multipliers or corporate-action treatment.
• Access and regulatory risk - a market visible in the interface may not be appropriate or available in every jurisdiction.

What should you check before trading a HIP-3 market?