Oracle
The Hyperliquid Oracle System provides reliable price data for funding rates, margining, liquidations, and triggering Take Profit/Stop Loss orders through robust, manipulation-resistant mechanisms.
Spot Oracle Price π
Validator-computed: Published by validators every 3 seconds for high-frequency market updates
Weighted median of major CEX prices: Binance (3), OKX (2), Bybit (2), Kraken (1), Kucoin (1), Gate IO (1), MEXC (1), Hyperliquid (1)
Final clearinghouse price: Weighted median of validator-submitted prices (validators weighted by stake)
Usage: Primary input for funding rate calculations and mark price component
Special cases:
Hyperliquid-native assets (e.g., HYPE): External sources excluded until sufficient external liquidity
External primary liquidity (e.g., BTC): Hyperliquid spot prices excluded from oracle
Mark Price π
Unbiased, robust estimate of fair perpetual contract price using median of three components:
Oracle price + 150-second EMA adjustment β’ EMA of difference between Hyperliquid mid-price and oracle price β’ Smooths short-term fluctuations and integrates market deviations
Hyperliquid order book median β’ Median of best bid, best ask, and last trade price
External perpetual median β’ Median of mid-prices from Binance (3), OKX (2), Bybit (2), Gate IO (1), MEXC (1)
Special handling: If only 2 of 3 components exist, a 30-second EMA of Hyperliquid bid/ask/last trade is added
Update frequency: ~3 seconds (synced with oracle updates) Usage: Liquidations, margin calculations, TP/SL triggers, unrealized PnL
Example
Spot Oracle Price: Calculated as $10,000.
150-Second EMA: Indicates Hyperliquidβs mid-price is on average +$20 above the oracle price (i.e. $10,020).
Hyperliquid Median (Bid/Ask/Last Trade):
Suppose the current best bid is $10,005, the best ask is $10,015, and the last trade occurred at $10,010.
The median of these three numbers would be $10,010.
External Perpetual Median:
Imagine the mid-prices from these exchanges are $9,995, $10,000, and $10,010.
The median of these values is $10,000.
The mark price is computed by combining the spot oracle price with the above inputs. In our example, the final mark price might then be in the vicinity of $10,010 to $10,020 (the exact mathematical formula is not publicly disclosed), reflecting both the consensus market price and the slight premium observed on Hyperliquid.
Comparison Table: Spot Oracle Price vs. Mark Price βοΈ
Source of Data
Aggregated CEX prices and Hyperliquid price
Combination of oracle price, Hyperliquid order book data, and external perpetual markets
Update Frequency
Every 3 seconds
Every 3 seconds
Calculation Method
Weighted median (using set weights per exchange)
Composite calculation: spot oracle price + 150-second EMA adjustment + medians from Hyperliquid and external sources
Primary Use
Funding rate calculations
Liquidations, margin calculations, TP/SL triggers, unrealized PnL computation
Additional Adjustments
N/A
Special inclusion of a 30-second EMA if one main input is missing
Margining & Contract Types π΅
Standard contracts:
USDC collateral, USDT-denominated prices - maximizes liquidity and accessibility
Quanto structure: No USDC/USDT conversion applied (USDT P&L directly in USDC)
USDC-denominated contracts:
PURR-USD, HYPE-USD - use USDC pricing due to primary Hyperliquid spot liquidity
Uniswap Perpetuals:
Isolated margin only - no cross margining or manual margin removal
Uniswap V2/V3 AMM prices converted to USDT using robust CEX oracle prices
Margin adjustment: Only through position closure (partial/full)
Anti-Manipulation Features π‘οΈ
Oracle independence: Spot oracle completely separate from Hyperliquid market data
Weighted medians: Resistant to single-source manipulation
Multi-component mark price: Combines internal and external data sources
EMA smoothing: Prevents short-term price manipulation from affecting critical calculations
Validator stake-weighting: Ensures oracle integrity through economic incentives
This robust oracle architecture ensures fair, transparent, and manipulation-resistant price discovery for all Hyperliquid trading operations.
Resources
Last updated