Four authors have submitted hyperliquid improvement proposal 4 (HIP-4) on September 16Introducing “Event Perpetuals” to make prediction markets possible on the order book infrastructure of the platform.
The proposal mentions Kalshi’s head of Crypto, John Wang, among the four co-authors. The text deals with restrictions in the existing HIP-3-builder-feature perpetuals from Hyperliquid for prediction market use.
The current infrastructure requires continuous oracle updates and limited price changes up to 1% per sign, making the resolution of the binary event impractical.
The aim of Event Perpetuals is to eliminate continuous Oracle Feeds and financing payments, with prices that are fully determined by trading activities. The contracts settle with binary payouts that reflect the market -imed probabilities between 0 and 1, so that they are immediately resolved to both outcome in the event of the conclusion of events.
The proposal shows the current restrictions via NFL gambling scenarios, where the chances of SportsBook as step functions during Games Update.
Under HIP-3 restrictions, arranging a market from neutral (0.5) to zero probability would require 50 minutes due to drawing restrictions, creating arbitration options for informed traders.
The attached Oracle Settling Chart illustrates the asymmetrical resolution problem, which shows a rapid settlement in the direction of 1.0 but gradually decay to 0, which emphasizes infrastructure challenges that motivated the new proposal.
Auction mechanism for discovering fair price
Event Perpetuals launch through Single-Price Clearing auctions that last approximately 15 minutes.
The system evaluates all candidate prices to maximize the matched volume, with tie-breaking preference for minimal imbalance and prices that are closest to 50%.
The diagram of the clearing mechanism shows prayer and demand distributions over price levels, whereby the system calculates optimum clearing prices that balance the supply and supply.
Orders are executed uniform at the set opening price before continuous trade starts.
Builders implement markets by setting up 1 million hype tokens and can charge up to 50% extra costs above the basic rates.
The infrastructure supports MarkRecycling, allowing new events to replace dissolved markets within existing slots.
Event Perpetuals only work with 1x isolated margin, where buyers have to deposit a collateral equal to their maximum potential loss.
The proposal concludes that trade takes place within price tires from 0.001 to 0.999, whereby the resolution -oracles post final values during specified challenge windows for dispute resolution.
