Hyperliquid is preparing one of the biggest updates for the outcome markets sector. The team plans to introduce permissionless deployment under the HIP-4 model: the feature will first launch on testnet and then on mainnet.
After the update, not only validators but also independent users will be able to create markets for specific events. Hyperliquid says this is because the number of potential events available for trading is far greater than the number of available spot and perpetual trading pairs.
How HIP-4 Will Work
Validators will not approve each individual market. Instead, they will vote to approve templates that define the event conditions, data sources, and final settlement rules. Creators will then be able to use these templates to launch their own markets without additional permission.
To obtain this right, users will have to lock up 500,000 HYPE. The collateral will be frozen for six months and may be partially or fully slashed if the creator violates the rules of the approved template or delays market settlement by more than one week.
Limits and Fees
In the initial phase, one creator will be able to maintain up to 100 active outcome markets simultaneously. Once a market is fully settled, its slot will be released and can be reused for a new event.
The developers have also included a mechanism for expanding the limit through an auction in future updates. Market creators will be able to receive up to 50% of the trading fees generated by their markets.
Validators Will Still Play a Role
The company emphasizes that markets created directly by validators will remain an exception, limited to no more than ten per year. The bulk of new event markets is expected to come from independent creators.
All HIP-4 parameters are still considered preliminary and may change after community discussion. The team says it will announce the testnet launch date separately, along with updated documentation.
Why “Outcome Markets” Instead of “Prediction Markets”
The crypto industry more commonly uses the term prediction markets. In the case of HIP-4, users trade predefined event outcomes — for example, yes/no results or several fixed answer options — and positions are settled once the final outcome is known. That is why the term outcome markets more accurately describes the mechanics of Hyperliquid’s product.