Hyperliquid Adds Trailing Stops to Perpetual Markets

Hyperliquid rolls out trailing stop orders for perpetuals

Hyperliquid has added trailing stop orders to its perpetual futures markets, giving derivatives traders an automated way to lock in gains while letting winning positions run. The new order type dynamically adjusts the trigger level as the market moves in favor of an open position and executes as a market order when the price retraces by a trader-selected distance or percentage from the best mark price.

How Hyperliquid trailing stops work

Unlike a fixed stop-loss, a trailing stop trails the mark price after activation and updates the trigger when the market moves favorably. For long positions, the trailing stop follows the highest mark price reached since tracking began; for shorts, it follows the lowest. When the asset pulls back by the configured amount or percentage, the system triggers a market order for the selected quantity.

Traders can choose between two retracement methods: a fixed distance in price units or a percentage of the mark price. An optional activation price lets users delay tracking until the mark reaches a specified level. If the activation field is left empty, tracking starts immediately from the current mark price. This gives traders flexibility to define when the trailing logic should begin—useful around major support or resistance zones, earnings events, or market opens.

Mark price, execution and slippage considerations

Hyperliquid's trailing stops reference the mark price to decide when to fire, following the platform's existing conditional order approach. However, the mark-triggered condition and the eventual execution can differ because the order converts to a market order at trigger time and then fills against available liquidity. That means trigger and execution prices may not be identical—especially in low-liquidity or fast-moving markets.

To manage slippage, Hyperliquid continues to offer both market and limit-style conditional orders. Market TP and SL orders include a 10% slippage tolerance by default, while limit variants let traders specify a limit price to cap slippage. For large blocks, traders can also use TWAP (time-weighted average price) routing, which breaks big orders into smaller suborders submitted at 30-second intervals with a max slippage parameter per suborder.

Practical examples and trader controls

Example 1: You open a long perpetual and attach a 3% trailing stop. After activation, the mark price rises from 50 to 60. The trailing trigger follows the peak and sits at roughly 58.2 (60 minus 3%)—if the mark pulls back to that level, a market order executes, locking in profits while allowing upside capture.

Example 2: A short with a fixed $200 trailing stop starts tracking at 10,000. The mark drifts down to 9,400 and the trigger follows the new lows. If the market rebounds by $200 from the lowest tracked mark, the trailing stop converts into a market order to close the short position.

These controls—distance vs percentage, activation price, and market vs limit execution—allow traders to tailor trailing stops to different strategies, from momentum trades to event-driven hedges and range-bound exits.

Where trailing stops fit in Hyperliquid's order suite

This addition expands Hyperliquid's conditional order toolbox, which already includes market, limit, stop market, stop limit, take market, take limit, scale, and TWAP orders. The platform's TWAP implementation targets execution quality for large, institutional-style flows while the scale order type helps traders stagger entries and exits across price levels.

Overall, trailing stops bridge an important gap for active derivatives traders who need automated, adaptive exits that reference the mark price rather than a static stop level.

Infrastructure upgrades and HIP 3 deployers

The trailing stop launch arrives amid broader upgrades to Hyperliquid's perpetuals architecture. A recent testnet update introduced a HIP 3 framework that allows third-party teams to deploy permissioned perpetual markets using onchain allowlists. HIP 3 deployers can either manage access themselves or delegate permissioning to sub-deployers. The permissioning system is optional, enabling a mix of public and permissioned markets on the network.

HIP 3's modular approach aims to expand the types of assets and market structures available through Hyperliquid's infrastructure. By enabling outside teams to run markets on the protocol, the network can scale its derivatives offering—covering crypto, commodities, tokenized equities, and other underlyings—while preserving the underlying onchain settlement and clearing primitives.

Regulatory developments and institutional access

There has been growing industry interest in bringing regulated perpetuals to onshore clients. Payward, Kraken's parent company, has outlined plans to make selected Hyperliquid perpetuals available to eligible U.S. users through a regulated vehicle called Bitnomial, subject to approvals. Under the proposed structure, CFTC-regulated Bitnomial would deploy and administer HIP 3 contracts while a clearing partner would hold customer accounts. This type of gateway could permit regulated access to perpetual futures without requiring direct access to Hyperliquid's decentralized trading rails.

Separately, Hyperliquid-affiliated groups have pursued regulatory relief for commodity-linked perpetuals. A filing to the CFTC requested permission for regulated energy perpetuals tied to WTI crude, Brent and Henry Hub natural gas. The proposal described stablecoin margining, leverage caps and an onchain regulated trading design for commodity contracts.

Trading activity, revenue and token dynamics

Derivatives volumes on Hyperliquid remain elevated as the platform adds features and integrations. In August, Coinbase integrated over 290 Hyperliquid-powered perpetual markets into its Base App, enabling traders to access crypto, stock and commodity-linked contracts while staying in their wallets. That integration offered leverage on supported markets up to 50x in non-U.S. jurisdictions at launch.

Hyperliquid's revenue has tracked higher alongside trading activity. CoinGecko reported that Hyperliquid generated approximately $429 million in revenue from Jan. 1 through Sept. 15 of the reported year, representing about 12.6% of a $3.40 billion comparative revenue pool across projects in CoinGecko's adjusted dataset. Part of platform fee income is directed to an Assistance Fund that buys HYPE on the open market, which can create additional token demand dynamics.

Protocol economics include tiered fee incentives: qualifying market makers can access negative maker fees (as low as -0.003%) and accounts staking more than 500,000 HYPE are eligible for a 40% trading fee discount. HYPE's price action reflected the platform's momentum: the token traded near record levels during the platform expansion and market updates, supported by new product launches such as manual borrowing.

New margin features and risks to consider

Following product expansion, Hyperliquid introduced manual borrowing that allows users to supply collateral—HYPE or Bitcoin—and borrow stablecoins like USDC or USDT. HYPE collateral currently supports a 65% loan-to-value ratio, versus a 50% LTV for Bitcoin under the same system. These tools can support retail and professional traders seeking margin exposure, but they also increase counterparty and liquidation risk if markets swing sharply.

Traders should be aware that trailing stops, while useful for automating exits, do not eliminate execution risk. Because Hyperliquid uses the mark price to trigger trailing stops and then executes market orders, rapid price moves or thin liquidity can produce fills meaningfully different from the trigger level. Conservative traders may opt for limit-based conditional orders, set tighter slippage controls, or split large positions with TWAP to improve execution quality.

Bottom line for derivatives traders

Hyperliquid's trailing stops add a flexible, automated exit mechanism to a growing suite of conditional orders. The feature should appeal to momentum traders, active risk managers and anyone looking to protect gains on perpetual futures without manually updating stop levels. Coupled with HIP 3's deployer model, regulatory engagement, and institutional integrations, trailing stops are another step in Hyperliquid's push to broaden its derivatives ecosystem while balancing execution tools, liquidity, and onchain innovation.