Hyperliquid HIP-4 to Enable Permissionless Outcome Markets With 500K HYPE Stake

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• HIP-4 outcome markets will support permissionless deployment in a future network upgrade, beginning on testnet before expanding to mainnet.
• Deployers must stake 500,000 HYPE, with the stake subject to slashing for incorrectly defined or settled markets.
• Validators will approve on-chain outcome templates, while deployers will be responsible for creating and settling markets based on those templates.

Hyperliquid prepares permissionless HIP-4 deployment

Hyperliquid has announced that its HIP-4 outcome markets will support permissionless deployment in a future network upgrade, with the rollout scheduled to begin on testnet before expanding to mainnet. The move follows the platform’s earlier approach for spot and perpetual market deployments, where new functionality was first tested in validator-operated environments before becoming available for broader participation.

The update marks the next phase in the evolution of HIP-4, which introduced fully collateralized outcome markets for event-based trading. Earlier releases focused on validator-operated and canonical markets while the protocol tested settlement mechanisms, infrastructure, and market operations. The latest announcement shifts attention toward enabling third-party builders to launch markets without requiring direct validator deployment, while maintaining governance safeguards around market quality and settlement.

According to Hyperliquid, permissionless deployment is particularly important because the number of potential event-based markets is significantly larger than the universe of assets available for perpetual futures or spot tokenization.

• 500,000 HYPE Stake: Required for every HIP-4 deployer, with a six-month lock period and slashing penalties for improperly defined or settled markets.
• 100 Initial Outcomes: Each deployer can initially create up to 100 outcomes (200 outcome tokens), with settled outcomes freeing allocation for future deployments.
• Up to 50% Fee Share: HIP-4 deployers will be able to configure fee sharing of up to 50% on deployed markets in a future protocol update.

Validators to approve templates while deployers create markets

Under the proposed framework, validators will vote on standardized outcome templates that will serve as the foundation for permissionless deployments. The specifications for these templates will be stored and enforced on-chain to promote consistency and reduce ambiguity.

The approved templates are intended to represent markets with sufficient liquidity and public interest. Once a template is approved, any HIP-4 deployer will be able to instantiate it without requiring additional validator approval.

Deployers will remain responsible for defining each market and settling it according to the settlement criteria specified in the selected template. Hyperliquid stated that multiple deployers will be permitted to launch identical market instances using the same approved template.

Canonical outcome markets created directly through validator voting will continue to exist but are expected to be used sparingly. Hyperliquid said these validator-deployed markets would ideally represent fewer than ten outcomes or questions annually.

500K HYPE stake, slashing rules and deployment limits

To participate as a HIP-4 deployer, users will be required to stake 500,000 HYPE. The stake will remain locked for six months, similar to HIP-3 deployments.

The protocol also introduces slashing conditions designed to encourage accurate market creation and settlement. Validator voting may slash a deployer’s stake if markets are poorly defined, settled incorrectly according to the approved template, or remain incorrectly unsettled for more than one week.

Before unstaking, deployers must settle all active markets, making long-duration outcome markets an important consideration for builders.

Initially, each deployer will receive an allocation of 100 outcomes, representing 200 outcome tokens. Multi-outcome questions may consume multiple allocation slots. Once an outcome has been settled, its allocation becomes available for reuse. Hyperliquid also said it plans to introduce an auction mechanism in a future update that will allow deployers to expand their outcome allocation.

HIP-4 deployers will eventually be able to configure fee sharing of up to 50% on markets they deploy, although fee configurability will be introduced in a later release. The protocol also confirmed that only AQAv2 quote tokens will be eligible for HIP-4 markets.

Recently, Hyperliquid was added to the Monetary Authority of Singapore’s (MAS) Investor Alert List (IAL), which identifies entities that may be mistakenly perceived as being licensed or regulated by MAS. Hyperliquid said the listing does not constitute a ban, enforcement action, or finding of wrongdoing, and reiterated that it operates as permissionless infrastructure where users retain self-custody and transactions settle transparently on-chain.

The announcement noted that all specifications remain preliminary and may change based on community feedback. Hyperliquid said a separate announcement will be issued once permissionless deployment becomes available on testnet and the official documentation has been updated.

HIP-4 has undergone a staged rollout throughout 2026. Hyperliquid first introduced outcome markets on testnet for technical validation before launching limited-feature mainnet support and canonical markets tied to objective real-world events. The newly announced permissionless deployment framework represents the next planned milestone, extending market creation capabilities beyond validator-operated deployments while retaining validator oversight through template approvals and slashing mechanisms.