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On this page
  • Spot Oracle Price 📈
  • Mark Price 📊
  • Uniswap Perpetuals 🦄
  • Margining and Oracle Usage 💵
  1. Technology Breakdown
  2. Hyperliquid L1
  3. Dex

Oracle

The Hyperliquid Oracle System plays a critical role in maintaining the accuracy and robustness of trading operations. It provides reliable price data for funding rate calculations, margining, liquidations, and the triggering of Take Profit (TP) and Stop Loss (SL) orders.

Spot Oracle Price 📈

Definition:

The spot oracle price is computed by validators and serves as a critical input to both funding rates and the mark price.

Key Features:

  • Published by Validators Every 3 Seconds: Ensures high-frequency updates for dynamic markets.

  • Weighted Median of CEX Prices:

    • Prices are aggregated from major centralized exchanges (CEXs), including Binance, OKX, Bybit, Kraken, Kucoin, Gate IO, MEXC, and Hyperliquid itself.

    • Weights: Binance (3), OKX (2), Bybit (2), Kraken (1), Kucoin (1), Gate IO (1), MEXC (1), Hyperliquid (1).

    • Final Price for Clearinghouse: The clearinghouse uses the weighted median of validator-submitted prices, with validators weighted by their stake.

Mark Price 📊

Definition:

The mark price is an unbiased, robust estimate of the fair price for perpetual contracts.

Components:

  • Spot Oracle Price combined with:

    • A 150-second EMA (Exponential Moving Average) of the difference between Hyperliquid’s mid-price and the oracle price.

    • Median of the best bid, best ask, and last trade on Hyperliquid.

    • Median of Binance, OKX, and Bybit perp mid-prices.

  • Special Case:

    • If only two of the three inputs exist, a 30-second EMA of the median of best bid, best ask, and last trade on Hyperliquid is also included.

  • Usage:

    • For liquidations, margin calculations, and TP/SL orders.

    • Computes unrealized PnL for active positions.

  • Update Frequency: Updated approximately every 3 seconds, in sync with oracle updates.

Difference Between Spot Oracle Price and Mark Price ⚖️

Spot Oracle Price

Mark Price

Published by validators every 3s.

Updated every 3s using spot oracle price.

Weighted median of CEX spot prices and Hyperliquid prices.

Combines oracle prices and Hyperliquid order book data.

Used for funding rate calculations.

Used for liquidations, margining, and TP/SL triggers.

Uniswap Perpetuals 🦄

Some perpetual contracts on Hyperliquid use Uniswap V2 or V3 AMM prices as their underlying spot asset.

  • Isolated-Only:

    • These contracts do not allow cross margining or manual margin removal.

    • To adjust margin, positions must be partially or fully closed.

  • Conversion to USDT:

    • Uniswap pool prices are converted to USDT using robust CEX oracle prices.

Contract Addresses for Uniswap Pools

Margining and Oracle Usage 💵

USDC Margining with USDT Prices

  • Primary Style:

    • Oracle prices are denominated in USDT, while collateral is held in USDC.

    • This combination maximizes liquidity and accessibility.

  • Quanto Contracts:

    • No conversion between USDC/USDT exchange rates occurs, meaning USDT P&L is denominated directly in USDC.

USDC-Denominated Contracts:

  • Specific Assets:

    • Only contracts with primary USDC liquidity (e.g., PURR-USD and HYPE-USD) have prices denominated in USDC.

This robust oracle system ensures Hyperliquid remains fair, reliable, and transparent for all traders.

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Last updated 3 months ago