Hyperps

Hyperps are perpetual contracts on Hyperliquid that function without an underlying spot or index oracle. They enable trading on assets that don’t yet have established spot markets.

How They Work

Instead of referencing an external oracle price, Hyperps use:

  • Mark price: 8-hour exponentially weighted moving average of the last day’s minutely mark prices
  • Funding: Based on the moving average mark price rather than external spot

The underlying asset only needs to eventually exist for settlement or conversion.

Price Stability Safeguards

  • Mark prices capped at 3x the 8-hour mark price EMA
  • External pre-launch perp listings cap mark prices at 1.5x the median external price
  • Oracle prices restricted to at most 4x the one-month average mark price

Conversion to Standard Perps

When the underlying asset launches spot trading on major CEXs (Binance, OKX, Bybit), the Hyperp converts to a standard perpetual contract with a real oracle. Example: a Hyperp tracking ABC converts to ABC-USD perp after ABC/USDT spot listing.

Use Case

Hyperps are more stable than traditional pre-launch futures because the moving average mechanism dampens volatility. They allow Hyperliquid to list assets earlier than exchanges that require established spot markets.