# Canonical: https://www.uddalak.xyz/hyperliquid-academy/article/66-hyperps
# Author: Uddalak Das
# Last source: https://www.uddalak.xyz/hyperliquid-academy/article/66-hyperps

---
title: "What Are Hyperps?"
description: "Hyperps are perpetual markets designed for assets that do not yet have a conventional spot-oracle setup, using a market-derived marking framework until they can transition to standard perps."
pillar: "Trading & Risk"
track: "Trading & Risk"
cluster: "Trading & Risk"
level: "Intermediate"
primary_icp: ["trader", "DeFi-native user"]
secondary_icp: ["market maker"]
content_type: "concept"
reading_time: "3 min"
last_reviewed: "2026-09-07"
last_verified: "2026-09-07"
volatile: true
prerequisites: ["09-perpetual-futures", "15-mark-oracle-last-price"]
related: ["96-hyperliquid-perpetual-contract-specifications", "98-price-time-priority-on-hypercore"]
---

# What Are Hyperps?

Hyperps extend perpetual trading to markets where a normal external spot index may not yet exist. Instead of pretending there is a mature spot oracle, the market uses a specialized marking mechanism derived from its own trading history. When an appropriate spot market becomes available, a Hyperp can transition to a conventional perpetual structure.

## Why a normal perp needs an oracle

A standard perpetual market needs an external reference so funding, margin, and liquidation cannot be controlled solely by the venue's own last trade. For established assets, multiple liquid spot exchanges can supply that reference.

Pre-launch or unusual assets do not have the same data. Building a fake “oracle” from a thin or nonexistent spot market would create a different problem rather than solving it.

## How Hyperps bridge the gap

Hyperliquid's documentation describes a marking proxy based on an eight-hour exponentially weighted moving average for these markets. The mechanism gives the risk engine a smoother reference derived from market behavior while the underlying lacks a normal spot index.

Because the reference is endogenous, Hyperps should be treated as structurally different from conventional perps. Their caps and risk parameters matter more.

## Transition to a standard perp

Once the underlying obtains an appropriate spot listing and oracle framework, the market can be converted into a vanilla perpetual. At that point, external reference pricing becomes available and the market's risk model can more closely resemble other perps.

## Risk for traders

Pre-launch markets can be exceptionally reflexive. Thin liquidity, uncertain fundamental value, concentrated positioning, and no mature spot anchor can make price moves violent. A smoother marking method does not eliminate those risks.

Treat Hyperps as a separate product class. Check current open-interest caps, leverage, marking rules, and transition status before using a strategy designed for established perpetual markets.

## How this connects

Start with [What Is a Perpetual Futures Contract?](/hyperliquid-academy/article/09-perpetual-futures), [Mark Price vs Oracle Price vs Last Price](/hyperliquid-academy/article/15-mark-oracle-last-price) if the underlying concept is unfamiliar. Related reading: [Hyperliquid Perpetual Contract Specifications](/hyperliquid-academy/article/96-hyperliquid-perpetual-contract-specifications), [Price-Time Priority on HyperCore](/hyperliquid-academy/article/98-price-time-priority-on-hypercore).

## Sources

- https://hyperliquid.gitbook.io/hyperliquid-docs/trading/hyperps
- https://hyperliquid.gitbook.io/hyperliquid-docs/trading/robust-price-indices