Contract Mechanics

How Events outcome tokens trade and settle on Hyperliquid HIP-4.

Events are fully collateralized Hyperliquid outcome markets. They settle within a fixed range and do not use leverage, funding, liquidations, or auto-deleveraging.

Two sides with one economic book

A binary market has two outcome tokens, commonly shown as Yes and No. HyperCore combines the two sides into one economic order book: buying Yes at price p is equivalent to selling No at 1 - p. This relationship allows liquidity posted through either side to participate in the same market.

Advanced users can use Hyperliquid’s split and merge actions to convert between collateral and outcome balances. Historical API responses may show the primary and dual orders separately even when the interface presents a single combined book.

Prices and probabilities

For binary markets settling between 0 and 1, prices are often interpreted as market-implied probabilities. That interpretation is approximate. Fees, liquidity, bid-ask spreads, position constraints, and other market conditions can cause price to differ from a participant’s estimate of the event’s likelihood. Trade[XYZ] does not represent a market price as a guarantee or statement of fact and does not endorse any prediction.

Settlement

At settlement, HyperCore converts the two outcome balances according to the submitted settleFraction.

In a binary result:

• settleFraction = 1 pays one quote token per Yes token and zero per No token.

• settleFraction = 0 pays zero per Yes token and one quote token per No token.

Some HIP-4 contracts may use a settlement value between 0 and 1 if their market terms allow it. Please refer to the applicable market terms and Resolution methodology.

Questions with multiple outcomes

HIP-4 enables grouping related outcomes into a question where one outcome settles to Yes and the others settle to No. Each outcome has its own order book, while HyperCore’s negate and merge operations link the balances economically.

See Hyperliquid’s HIP-4 outcome-market documentation and exchange API for protocol-level details.