Event perpetuals represent a class of perpetual futures contracts that are explicitly tied to discrete events or outcome conditions rather than merely to asset price movements, and they remain open until a predefined trigger resolves their settlement. These instruments let market participants maintain continuous exposure to an event’s likelihood, with prices that encode implied probabilities rather than spot-level expectations, and they consequently function partly like prediction markets while preserving leverage and margin mechanics familiar to derivatives traders. The contracts avoid traditional expiry cycles, so traders can hold positions indefinitely until the coded trigger fires, and this design creates distinct risk/return profiles centered on event resolution rather than time decay. The model expands derivative use cases to include elections, protocol upgrades, or on-chain governance outcomes, providing new strategies for hedging and speculation. They also leverage funding rate mechanics to align incentives between long and short participants. Regulatory environments shape availability and compliance requirements for users across jurisdictions.
Perpetual futures tied to discrete events, encoding implied probabilities and offering continuous, leveraged exposure until on-chain resolution.
Hyperliquid implements event perpetuals using smart contract logic that removes dependence on external oracles, thus reducing a common attack surface and lowering operational costs associated with off-chain data feeds. Settlement logic relies on verifiable on-chain signals or self-executing conditions embedded in protocol code, so finality is achieved without third-party adjudication, and this enhances transparency while simplifying the trust model. The oracle-free approach eliminates latency introduced by data fetching and mitigates manipulation vectors tied to centralized feed providers, but it also requires careful specification of on-chain event definitions to avoid ambiguous outcomes.
When a specified event occurs, the platform triggers an automated 15-minute auction to determine final settlement prices, giving market makers and liquidity providers a brief, structured window for price discovery. The auction mechanism replaces continuous funding-rate adjustments common in standard perpetuals, concentrates liquidity when it is most needed, and produces a clear payout metric for contract holders. Auctions balance speed and depth, although they introduce short-lived concentration risk and necessitate robust risk controls.
Hyperliquid’s modular architecture, governance features, and liquidity incentives support these contracts, while user interfaces display event status and countdowns to maintain transparency. Risk management protocols and careful event design remain essential to limit manipulation and ensure orderly settlements.
