Hyperliquid has launched Outcome Trading on its testnet, introducing fully collateralized contracts designed for prediction markets and event-based trading, the platform announced on February 2.
The feature was introduced under Hyperliquid Improvement Proposal 4 (HIP-4) and allows users to trade outcome-based contracts that settle within a predefined price range. Unlike traditional crypto derivatives, the contracts do not use leverage and must be funded in full, eliminating liquidation risk.
Outcome Trading focuses on real-world events such as elections, sports outcomes, and economic data releases. Because positions are fully collateralized, traders are exposed only to the result of the event itself, offering a lower-risk alternative to perpetual futures.
Hyperliquid said the system supports non-linear payouts and time-based settlement, giving users more flexibility in expressing market views. The feature is designed to operate alongside existing tools such as portfolio margin and HyperEVM, allowing developers to integrate outcome contracts into broader decentralized applications.
At launch, Outcome Trading is available only on the testnet and remains under active development. Hyperliquid plans to introduce curated “canonical” markets once testing is complete. These markets will be settled in USDH, the platform’s stablecoin, and will rely on objective data sources to minimize disputes.
If testing proves successful, Hyperliquid may later allow permissionless market creation, enabling users to launch their own outcome-based contracts.
The move marks Hyperliquid’s latest expansion beyond perpetual futures. Earlier upgrades, including HIP-3, enabled permissionless markets for tokenized stocks, commodities, and other real-world assets. With outcome trading, Hyperliquid is entering the rapidly growing prediction market sector, currently led by platforms such as Polymarket and Kalshi.
A potential mainnet launch could follow later in 2026, further positioning Hyperliquid as a multi-product, on-chain derivatives platform.
