What is Hyperliquid?

What is Hyperliquid?

Hyperliquid is a blockchain network with a trading venue built into it. HYPE is its crypto-asset; it can be delegated to validators and pays fees in the HyperEVM app environment. A trader can place an order to buy or sell an asset, and orders and executions are recorded on-chain. HyperCore handles spot trading and perpetual futures. Perpetual futures are derivatives that may be traded with leverage, which can amplify losses as well as gains.

The order book distinguishes Hyperliquid from an app whose matching and trading record live only in the app operator's system. Solana can host trading apps, while Hyperliquid builds order books into its own network. HyperEVM also lets developers run other applications on the network. Trading on HyperCore and building an app on HyperEVM are related uses of the same infrastructure, but they are not the same activity.

What is HYPE used for?

HYPE is the network's own crypto-asset. It can be delegated to validators on HyperCore and pays network fees on HyperEVM. According to the network's rules, staked HYPE can also reduce trading fees.

Some trading fees flow to a fund that converts them to HYPE and removes that HYPE from circulation. This links trading activity to the asset's supply, but the amount depends on fee flows and the rules in force. It does not make HYPE's price a direct measure of trading volume.

HYPE directly or through an ETP

Direct HYPE can be used in network functions, including staking. Virtune Hyperliquid ETP instead gives HYPE price exposure through an exchange-traded security. It is physically backed with HYPE held as collateral. The holder owns the security, not HYPE in a personal wallet. The product does not stake HYPE, so it does not pass through network staking rewards or trading-fee discounts.

Buying Hyperliquid through a broker covers this product's exchange tickers, quoted prices and purchase costs.

Costs when buying Virtune Hyperliquid ETP

Cost	Charged by	When
Brokerage commission	Broker	On every purchase and sale
Difference between bid and ask price	Market	On every trade
Management fee, 0.95% per year	Issuer	Ongoing, from the product's value
Currency conversion	Broker, if applicable	If the product trades in another currency

Risks to understand

HYPE's price can change sharply. Trading derivatives on Hyperliquid has risks distinct from holding HYPE; leverage can magnify a trader's loss. The ETP carries HYPE price risk plus issuer, custody and exchange-trading risks. Physical backing does not protect against price falls.