# 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** 📈 * **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** 📊 **Unbiased, robust estimate** of fair perpetual contract price using median of three components: 1. **Oracle price + 150-second EMA adjustment** • EMA of difference between Hyperliquid mid-price and oracle price • Smooths short-term fluctuations and integrates market deviations 2. **Hyperliquid order book median** • Median of best bid, best ask, and last trade price 3. **External perpetual median** • 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 Hyperliquid’s 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 ⚖️ | Feature | Spot Oracle Price | Mark Price | | -------------------------- | ------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------- | | **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** 💵 **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** 🛡️ * **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 * [Robust price indices](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/robust-price-indices) * [Oracle](https://hyperliquid.gitbook.io/hyperliquid-docs/hyperliquid-l1/oracle) * [Contract Addresses for Uniswap Pools](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/uniswap-perpetuals) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://hyperliquid-co.gitbook.io/wiki/architecture/hypercore/dex/oracle.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.