Hyperliquid runs a central limit order book on its own chain, with every order, fill, position and liquidation publicly verifiable. That combination — professional-grade execution with complete transparency — did not exist before, and it is why the venue took a large share of on-chain derivatives volume within two years of launch.
Execution and cost
Fees are roughly 0.025% maker and 0.045% taker at the entry tier, falling with volume, which undercuts most centralised venues. Depth on BTC, ETH and SOL perpetuals is the best available on-chain and competitive with mid-tier centralised exchanges. Funding is paid hourly, and the HLP vault provides market-making liquidity that users can deposit into, earning the spread and taking the corresponding risk.
The JELLY incident and what it revealed
In March 2025 a trader opened a very large short in the illiquid JELLY market and then pushed the token's price up on external venues, forcing the HLP vault to absorb the losing side. Hyperliquid's validators voted to delist the market and settle positions at a price of their choosing, protecting the vault. Users were not harmed and arguably the intervention was correct — but a venue that can change the settlement rules mid-trade is not neutral infrastructure in the way its marketing implies. Position limits and stricter listing criteria followed.
Risk profile
The chain is purpose-built and its validator set is small, which means consensus-level decentralisation is well behind Ethereum's. HLP depositors are exposed to trading losses in stressed markets, not just to spread income. And a growing share of the ecosystem — spot markets, an EVM layer, a token — depends on a single team's execution.
Who should use Hyperliquid
Active derivatives traders who want centralised-quality execution without a custodian holding their collateral, and who accept a young chain with concentrated validation. It is the strongest product in this category on execution. Treat HLP as a market-making position rather than a savings account, and size positions on the assumption that illiquid markets can be manipulated.