Hyperliquid's first HIP-4 achievement DEX and OUT launched

Hyperliquid completes first builder-deployed HIP-4 results exchange

After OUT completed deployment through Hyperliquid's permissionless market framework, the network welcomes the first reported builder-deployed HIP-4 results exchange.

Overview

OUT becomes the first results-based decentralized exchange (DEX) deployed through Hyperliquid's HIP-4 framework. Deployers can create "yes/no" markets using templates approved by Hyperliquid validator. The HIP-4 contract is fully collateralized and does not involve leverage, funding rates or clearing mechanisms. Hyperliquid's current developer documentation lists unlicensed deployer operations as an available feature on the testnet.

Hyperliquid's block browser shows that a successful on-chain transaction registered a result exchange named OUT through the HIP-4 deployment framework. The deal confirmed the deployment of OUT but did not show whether its market was open for real-time trading. At the time of writing, there is no separate announcement or verifiable website detailing its markets, liquidity or trading activities.

Hyperliquid's HIP-4 framework allows builders to create marketplaces

According to Hyperliquid's developer documentation, HIP-4 allows approved deployers to create results marketplaces without having to seek validator approval for each individual contract. Each market must still follow the template previously approved by the Verifier Set. The template defines the basic form of the contract, available results, and settlement method. Once the validator approves a template, the deployer can use the same structure to create an independent market that meets its conditions.

The "Yes/No" template allows traders to choose between two possible outcomes. Multi-result templates can cover questions with multiple possible answers, but Hyperliquid's main HIP-4 document states that multi-result support is not initially included in the mainnet release, but will be rolled out in phases.

Hyperliquid's deployer page (updated August 13) lists the functions of activating DEX, selecting templates, setting deployer fee ratios, and creating markets. The document currently marks its HIP-4 deployer operations as testnet only, which means that deployment of OUT should not be described as a confirmed unlicensed mainnet launch without additional evidence.

As crypto.news previously reported in July, Hyperliquid's permissionless deployment plan was originally planned to be launched on the test network before entering the main network. The proposal requires market operators to pledge 500,000 HYPEs and allows validators to forfeit deployers for inaccurate or delayed settlement.

According to Hyperliquid's framework, HIP-3 and HIP-4 operations need to be pledged separately, because the same HYPE cannot support both deployments at the same time. At current prices, this requirement could impose higher entry costs for independent teams wanting to operate both perpetual contracts and results exchanges.

HIP-4 Outcome Contract De-leverage and Clearing Mechanism

Hyperliquid launched HIP-4 on the beta website in February, and subsequently activated the first results contracts on the main website on May 2. A July HIP-4 framework explanatory document described the products as fully collateralized contracts that settle within a fixed range at maturity. Unlike perpetual contracts, outcome positions do not rely on borrowed funds or regular payments between long and short traders. HIP-4 has no funding rate, and fully collateralized positions eliminate the clearing process used to liquidate leveraged positions when collateral falls below the maintenance margin requirement.

For a binary market,"Yes" tokens settle to 1 when the event occurs and to 0 when it does not occur. If the "no" party results in the opposite result. Traders who buy "Yes" tokens at 0.60 will earn 0.40 per contract if an event occurs, and the purchase price represents the maximum possible loss.

Hyperliquid's documentation describes HIP-4 as a general tool rather than a system limited to traditional prediction problems. Its fixed-range structure can also support bounded options products whose maximum gains and losses are known at the time of opening a position. Trading takes place through HyperCore, the network's on-chain orderbook engine. HyperCore also runs Hyperliquid's spot, perpetual contracts, and markets deployed by HIP-3 builders, allowing HIP-4 products to use the same matching infrastructure and order types.

According to the agreement document, no fee will be charged when opening a resulting position. Fees may be incurred when traders close, destroy or settle positions, but Hyperliquid waived fees for the resulting market during its initial testing.

Bitcoin and CPI contracts test HIP-4 settlement

Hyperliquid's first main-network HIP-4 product is a duplicate Bitcoin binary contract. The market settles daily at 06:00 UTC time based on the BTC marked price published by HyperCore, providing objective data points for determining whether "yes" or "no" tokens are paid. The network later expanded its products beyond cryptocurrency prices. In May, a U.S. CPI contract allowed traders to take positions on the annual inflation rate released by the Bureau of Labor Statistics.

This CPI market offers three possible outcomes: below 4.3%, exactly 4.3% or above 4.3%. It uses USDC as collateral and plans to settle based on official BLS data, with early activity trading volume of approximately $3000 and open interest of approximately $5000.

According to Galaxy Research, the markets subsequently settled by validators cover Fed decisions and sporting events. The research company said verifiers can publish approved off-chain results through regular network operations, reducing reliance on individual oracle providers. Galaxy reported that the HIP-4 achieved a 24-hour Bitcoin results volume of US$2.38 million on its 25th day. According to the company's June report, this figure accounted for approximately 20% of the total Bitcoin forecast market volume between Hyperliquid and Polymarket at the time.

After an early rally due to the World Cup market, activity subsequently declined. Blockworks data cited in the July market report showed that open interest in HIP-4 was approximately $182,000 at the time and cumulative nominal activity was approximately $881,000, although these figures cover later points and use different measurement cycles.

U.S. user access depends on event contract regulation

For U.S. traders, OUT does not have the same regulatory status as Kalshi, which operates event contracts through a designated contract market registered with the Commodity Futures Trading Commission (CFTC). Hyperliquid has not announced that OUT is registered with the CFTC or is available for use by U.S. users.

The Hyperliquid Policy Center and Multicoin Capital discussed regulatory differences in a forecast market rules document in July. These agencies require the CFTC to issue clear federal standards for reviewing incident contracts and publicly explain why specific contracts are approved or rejected. Their submission stated that settlement terms should determine whether a contract falls into a restricted category involving gambling, war, assassination or illegal activity. The document represents an industry policy request and does not give the HIP-4 exchange authority to serve U.S. traders.

State and federal regulators are also debating whether certain sporting event contracts are federally regulated derivatives or state-regulated gambling. Kalshi, Crypto.com and Robinhood have faced state-level challenges for sports-related products, even though these contracts are provided through federally regulated market structures. According to August documents cited by Hyperliquid Strategies, Hyperliquid users in the United States still cannot access the protocol. The company said it was not aware of an ongoing CFTC approval process for the network and warned that access to regulated U.S. markets could not be guaranteed.