> ## Documentation index
> Fetch the complete documentation index at: https://hypertake.net/llms.txt
> Use this file to discover all available pages before exploring further.

# Hyperliquid and HIP-4

> What Hyperliquid is, what HIP-4 added, and why outcome markets there work the way they do

Source: https://hypertake.net/docs/hyperliquid-and-hip-4 · Last updated: 2026-10-17

**Hyperliquid** is a blockchain built for trading: its order books, balances and settlement run on-chain, with no gas for trading. **HIP-4** (Hyperliquid Improvement Proposal 4) added outcome markets to it: fully collateralised contracts that settle within a fixed range, used for prediction markets.

In Hyperliquid's words, outcomes are "fully collateralized contracts that settle within a fixed range", bringing "an alternative form of derivative trading that does not involve leverage or liquidations" ([HIP-4](https://hyperliquid.gitbook.io/hyperliquid-docs/hyperliquid-improvement-proposals-hips/hip-4-outcome-markets)).

## Timeline

| Date (UTC) | What happened |
| --- | --- |
| 10 Mar 2026 | HIP-4 live on testnet: recurring binary options on Hyperliquid mark prices |
| 2 May 2026 | Live on mainnet; the first market, a daily BTC binary, settled at 06:00 UTC |
| 13 May 2026 | Multi-outcome questions, with split, merge and negate |
| 26 May 2026 | Markets on off-chain events (CPI, the Fed funds rate); USDC becomes the quote asset |
| 31 Aug 2026 | Permissionless deployment enabled on mainnet: approved deployers can create markets from validator-voted templates |

_From Hyperliquid's official announcements._

## How an outcome market works

- **Two sides**: Every outcome has a Yes token and a No token. Prices are in USDC, between 0 and 1 (shown as cents).
- **Fully collateralised**: One Yes plus one No is always worth exactly 1 USDC at settlement, so every share is backed. There's no leverage and no liquidation.
- **One shared book**: Yes and No share a merged order book: buying Yes at 40¢ is the same order as selling No at 60¢.
- **Settlement**: At the close, Yes converts to the market's settle fraction of 1 USDC and No to the rest. For yes/no markets that's $1 or $0; a few markets can settle to a fraction. See [Payouts](https://hypertake.net/docs/outcomes/payouts.md).
- **Who creates markets**: A few recurring markets are run by the protocol. Most are created by approved deployers from templates that validators vote on; deployers stake HYPE and settle their markets by the template's rules, and can be slashed for getting it wrong.

> **Note**
> Hypertake shows HIP-4 markets; it doesn't create or settle them. Where Hyperliquid's own documentation disagrees with this page, Hyperliquid's documentation is right.

- [Market types](https://hypertake.net/docs/outcomes/market-types.md): Above, touch, ladders and multi-outcome questions.
- [How markets settle](https://hypertake.net/docs/outcomes/settlement.md): Who decides the result, from which price, and when you're paid.