Hyperliquid Advances Prediction Market Plans with HIP-4 Upgrade

Summary: Hyperliquid is preparing to compete with Polymarket and Kalshi by launching "outcome tokens" through its HIP-4 upgrade. The platform has published its fee structure, charging zero fees to open positions and only applying costs when closing or settling trades. Currently on testnet, this move positions Hyperliquid to capture a share of the $63.5 billion prediction market sector.

What Is HIP-4?

HIP-4 introduces fully collateralized outcome contracts that settle within a fixed range. Unlike traditional leveraged derivatives, these contracts avoid liquidations and enable trading on real-world events — from politics to sports — alongside Hyperliquid's existing perpetuals and spot positions in a single account.

Key Details of the Fee Structure

ActionFeeOpening a positionFreeClosing or settlingStandard fees applyUsing "aligned quote tokens"20% lower taker fees, 50% higher maker rebates

The complete fee formula has been published for developers looking to build on the platform.

Why This Matters

Prediction markets surged over 300% in 2025, reaching $63.5 billion in trading volume. Hyperliquid's previous upgrade (HIP-3), which enabled permissionless perpetuals, now accounts for over 35% of all platform trading volume since October 2025.

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The competition is heating up: Polymarket recently announced that perpetual trading is "coming soon," while Coinbase has already rolled out prediction market products across all 50 U.S. states via Kalshi contracts.

Current Status

Outcome tokens remain on testnet only — no mainnet launch date has been confirmed. Hyperliquid plans a phased rollout, with canonical markets denominated in USDH stablecoin.

Hyperliquid Advances Prediction Market Plans with HIP-4 Upgrade