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What is HIP-3? Hyperliquid's builder-deployed perps, explained

HIP-3 is the upgrade that brought stocks, gold and oil to Hyperliquid. It hands market creation to outside teams, with a big stake on the line. Here is how it works, in plain words.

By CopyHype · Updated · 6 min read

Short answer

HIP-3 is a Hyperliquid upgrade that lets any team that stakes 500,000 HYPE deploy its own perps exchange on Hyperliquid's engine. The deployer defines the markets, sets the oracle prices and the leverage limits, and earns a share of the fees. Validators can slash the stake if the deployer misbehaves. HIP-3 is how markets like Tesla, the S&P 500, gold and oil came to Hyperliquid.

For years, a perps exchange decided on its own which markets to list. HIP-3 changed that on Hyperliquid. Now an outside team can launch a full set of perps on Hyperliquid's engine, pick the assets, run the prices, and earn from the trading, as long as it puts a very large deposit on the line. This guide explains what that means for traders, in plain words.

What does HIP-3 stand for?

HIP stands for Hyperliquid Improvement Proposal. HIP-3 is the proposal for builder-deployed perpetuals. In short: perps markets launched by builders, not by Hyperliquid itself.

Hyperliquid numbers its upgrades like this. HIP-1 and HIP-2 were about tokens and liquidity on Hyperliquid's spot side. HIP-3 brought the same idea to perps: the core engine stays shared, but the markets on top can be created by others (>Hyperliquid docs, HIP-3).

HIP-4 came next: outcome markets, Hyperliquid's prediction markets, live on mainnet since May 2, 2026. They are Yes or No contracts on events like matches and crypto prices, with no multiplier. See Hyperliquid prediction markets explained.

How does HIP-3 work?

A deployer stakes 500,000 HYPE, launches one perp dex on Hyperliquid, and defines and operates its markets. Trading, margin and liquidations run on Hyperliquid's engine like any other market.

In Hyperliquid's words, "Any deployer that meets the staking requirement can deploy one perp dex." The requirement on mainnet is 500,000 HYPE, expected to fall over time, and it must stay staked for at least 183 days after the dex is deployed (>Hyperliquid docs, HIP-3). At the HYPE price used in one April 2026 analysis, that stake was worth about $25 million (>BlockEden).

For traders, a HIP-3 market looks and feels like any Hyperliquid perp: long or short, a multiplier, USDC margin, hourly funding. Many apps show the deployer's name in front of the ticker, like xyz:GOLD.

What does a HIP-3 deployer control?

The market's definition and its day to day operation: the oracle price, the contract specs, the leverage limits, and settlement if needed. That is a lot of power, which is why the stake is so big.

Deployer job What it means for you
Define the oracle Decides what "the price" of the asset is
Set contract specs Tick sizes, size limits, which asset it tracks
Set leverage limits The maximum multiplier you can use
Push oracle prices Keeps the market priced, including when real markets close
Halt and settle Can stop trading, cancel orders and settle positions at the mark price

All of these come from Hyperliquid's HIP-3 page, which also tells deployers to prefer underlying assets with well-defined prices that are hard to manipulate (>Hyperliquid docs, HIP-3).

What happens if a deployer misbehaves?

Validators can vote to slash the deployer's stake, up to 100% for the worst cases. Slashed HYPE is burned, not paid to traders. The stake stays slashable during the 7-day unstaking queue.

Hyperliquid's guideline maximums are up to 100% for irregular inputs that cause invalid state or long downtime, up to 50% for those that cause brief downtime, and up to 20% for invalid inputs that degrade the network (>Hyperliquid docs, HIP-3). Note the last detail: slashing punishes the deployer, but it does not reimburse you. If a bad price wipes out your position, the slash is not your refund.

How do HIP-3 fees work?

Deployers can add their own fee share on top of the protocol fee, and on the main stock and commodity markets total fees are about twice the usual. A "growth mode" can cut all-in fees by 90% or more.

Hyperliquid's fee page says deployers can set a fee share of 0% to 300% (0% to 100% in growth mode), and that spot and HIP-3 deployers may keep up to 50% of trading fees. Growth mode gives at least a 90% reduction on all-in fees, with a 30-day cooldown per asset (>Hyperliquid docs, fees). On trade.xyz, standard markets cost 0.09% taker and 0.03% maker at the base tier, split 50/50 with Hyperliquid (>trade.xyz docs, fees).

Who deploys HIP-3 markets?

trade.xyz is by far the largest, with stocks, indices, commodities and currencies. Others have launched crypto index markets. Deployers come and go, so check who runs the market you trade.

An April 2026 analysis reported that trade.xyz held about 91% of HIP-3 open interest, and that another deployer, Paragon, launched crypto index perps on April 2, 2026, covering Bitcoin dominance and other altcoin baskets (>BlockEden). trade.xyz's own docs describe it as a non-custodial interface running its perps under the xyz deployment (>trade.xyz docs).

Why does HIP-3 matter for traders?

More markets, open more hours, on one wallet. It is why you can now bet on Nvidia, gold or the S&P 500 from the same USDC balance as Bitcoin, including on weekends.

That convenience is real. So is the trade-off: each HIP-3 market is only as good as its deployer's oracle and rules. A badly run oracle on a thin market is the classic recipe for manipulation. When you pick a HIP-3 market, you are trusting the deployer as well as Hyperliquid. Our guide to the markets themselves is stocks, gold and oil on Hyperliquid.

What are the risks of HIP-3 markets?

Deployer risk, oracle risk, off-hours pricing and concentration. None of them exist in quite the same way on Hyperliquid's own crypto markets.

  • Deployer risk. The deployer can halt and settle a market at the mark price.
  • Oracle risk. A weak or slow price feed can be gamed, especially on thin markets.
  • Off-hours pricing. When the real market is closed, prices drift with the order book and can jump at the reopen.
  • Concentration. One deployer holding most of HIP-3's open interest means one point of failure for most of it.
  • Slashing is not insurance. Burned stake does not come back to traders.

Does CopyHype support HIP-3 markets?

Yes. Next to crypto, CopyHype lists stocks, commodities and indices, which come from HIP-3 markets. You can copy a whale who trades them or trade them solo, from $5 a trade.

The app shows each whale's open trades, so you can see when a trader uses these markets before you tap Copy. Fees are the same on CopyHype's side, 0.1% of the position each way, plus the market's own Hyperliquid fee. Read how to trade stocks, gold and oil on Hyperliquid for the market hours and limits, then practice with $1,000 of practice money in >@copyhypefamilybot.

Frequently asked questions

How much HYPE do you need to deploy a HIP-3 market?

500,000 HYPE on mainnet, kept staked for at least 183 days after deployment. Hyperliquid expects the requirement to decrease over time.

Can anyone create a perp on Hyperliquid?

Anyone who meets the staking requirement can deploy one perp dex under HIP-3. In practice, the stake limits it to well-funded teams.

Are HIP-3 markets safe?

They run on Hyperliquid's engine, but each depends on its deployer's oracle and rules. Validators can slash a misbehaving deployer, but slashed stake is burned, not paid to traders.

Why do HIP-3 tickers have a prefix like xyz:?

The prefix names the deployer's dex. xyz is trade.xyz's deployment. Different deployers can list markets on the same asset under their own prefix.

Are HIP-3 fees higher?

On the main stock and commodity markets, yes, about twice the usual perps fee, unless the market is in growth mode, which cuts fees by 90% or more.

Where do these facts come from?

From Hyperliquid's and trade.xyz's official docs, and an April 2026 market analysis. Sources: