Hyperliquid Testing HIP-4 Upgrade for Prediction Markets
On February 10, 2026, Hyperliquid revealed that it is testing HIP-4, a protocol upgrade that introduces 'outcome trading' — fully collateralized, fixed-range contracts designed for prediction markets and options-like instruments.
What Is HIP-4?
HIP-4 (Hyperliquid Improvement Proposal 4) extends the platform beyond traditional perpetual futures:
- Outcome trading — binary or multi-outcome contracts where prices are bound between 0 and 1 (or 0 and a fixed cap)
- Full collateralization — unlike leveraged perpetuals, outcome contracts require full collateral
- Settlement at expiry — contracts settle based on the actual outcome of an event
Use Cases
- Prediction markets — trade on the probability of events (elections, sports, crypto milestones)
- Options-like instruments — create payoff profiles similar to call and put options
- Insurance products — hedge against specific events or outcomes
Why This Matters
Prediction markets have seen explosive growth since Polymarket's success in 2024-2025. Hyperliquid's entry into this space brings several advantages:
- Existing liquidity — Hyperliquid's massive user base provides immediate liquidity
- Proven infrastructure — the platform already handles $10B+ daily volume
- No gas fees — makes small prediction market trades viable
Current Status
HIP-4 is currently in the testing phase on Hyperliquid's testnet. No mainnet launch date has been announced, but the community anticipates a Q2 2026 deployment.