Hyperliquid tests HIP-4 prediction markets with zero-fee opening trades and settlement charges

Hyperliquid is testing a prediction markets proposal named HIP-4, introducing a structure with no fees on opening trades and charges applied only at settlement, reports Unchained Crypto.

The model differs from existing platforms such as Polymarket, which charges up to 2% on winning bets, a cost that compounds for high-frequency traders.

The proposed approach is combined with Hyperliquid’s cross-margining system and existing infrastructure, allowing users to manage multiple positions within a single account. The platform already supports crypto perpetual futures and commodity-linked contracts, which would be accessible alongside prediction markets under the same wallet.

Early versions of HIP-4 are running on testnet. Hyperliquid has not provided a date for a mainnet release. The decentralized exchange processed $219 billion in total trading volume in March 2026.

The proposal would allow trading of binary contracts tied to real-world outcomes, including elections, sports events, and economic data releases.

On-chain researcher Fleck found that approximately 3.3% of Polymarket users are also active on Hyperliquid, accounting for about 12% of Polymarket’s total volume.

BitMEX co-founder and Maelstrom CIO Arthur Hayes said the HYPE token creates an additional layer of differentiation. He argued that Hyperliquid users can benefit economically from platform activity through HYPE in a way that neither Polymarket nor Kalshi currently offers to their users.

The HIP-4 proposal was co-authored by John Wang, head of crypto at Kalshi. The two firms announced a partnership in March to develop on-chain prediction markets.

The prediction market sector recorded more than 300% growth in 2025, reaching $63.5 billion in combined trading volume. During the same period, Kalshi announced perpetual futures contracts under the Timeless name, while Polymarket is preparing 10x leveraged contracts tied to bitcoin, Nvidia, and gold.

Polymarket is seeking approval from the CFTC to reopen its main international exchange to US traders.

Hyperliquid has not disclosed how it would determine which real-world events qualify for markets, what governance process would approve new contracts, or how oracle-based dispute resolution would operate at scale. The platform restricts US users, limiting direct competition with Kalshi in the regulated domestic market.

Some market participants have raised questions about whether Hyperliquid’s interface, designed for derivatives traders, can attract retail-driven volume comparable to Polymarket.

Syncracy Capital investor Sunny Shi said the cross-margin architecture would create edge cases for sophisticated traders but acknowledged the retail distribution challenge.