Four authors submitted Hyperliquid Improvement Proposal 4 (HIP-4) on Sept. 16, introducing “Event Perpetuals” to enable prediction markets on the platform’s order book infrastructure.

The proposal lists Kalshi’s head of crypto, John Wang, among its four co-authors. The text addresses limitations in Hyperliquid’s existing HIP-3 builder-deployed perpetuals for prediction market use cases.

The current infrastructure requires continuous oracle updates and limits price changes to 1% per tick, making binary event resolution impractical.

Event Perpetuals’ goal is to eliminate continuous oracle feeds and funding payments, with prices determined entirely by trading activity. The contracts settle with binary payoffs reflecting market-implied probabilities between 0 and 1, resolving instantly to either outcome upon event conclusion.

The proposal demonstrates current limitations through NFL betting scenarios, where sportsbook odds update as step functions during games.

Under HIP-3 constraints, settling a market from neutral (0.5) to zero probability would require 50 minutes due to tick limitations, creating arbitrage opportunities for informed traders.

The attached oracle settling chart illustrates the asymmetric resolution problem, showing rapid settlement toward 1.0 but gradual decay toward 0, highlighting infrastructure challenges that motivated the new proposal.

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Author: Gino Matos