Hyperliquid has updated the official documentation for HIP-3 (builder deployment of Perpetual Contracts), confirming that the 500k HYPE collateral threshold required for deploying the perpetual DEX on the mainnet will “gradually be reduced as the infrastructure matures,” and any collateral portion staked above subsequent lower thresholds can be withdrawn. HIP-3 inherits HyperCore’s high-performance margin guarantees and order book technology stack.
## Confirmed Terms for Collateral Thresholds
Core Update (Confirmed): 500k HYPE is the current mainnet requirement, expected to gradually decrease as the infrastructure matures; collateral deposits above the latest requirement can have the excess withdrawn.
Minimum Maintenance Period (Confirmed): The collateral requirement must be maintained for at least 183 days after the DEX is deployed.
Future Upgrade Direction (Confirmed): Future upgrades may support multiple DEX deployments sharing the same deployer and collateral requirements.
Collateral Selection (Confirmed): Any quoted asset can be used as collateral for the DEX; for assets that do not meet the requirement for unpermissioned quoted assets, they will lose their quoted eligibility based on on-chain validator voting, and at the same time the perpetual DEX will be disabled from using that asset as collateral.
## Fee Structure and Asset Bidding Specifications
Fee Structure (Confirmed):
· Deployer fees are fixed at 50% proportionally
· User trading fees in the HIP-3 market are twice those of the validator’s direct trading market
Final Result: The total amount of trading fees collected by the protocol remains unchanged; user rebates are unaffected and have no relation to the deployer
Asset Bidding Mechanism (Confirmed): In the target index, the first 3 assets require no bidding; subsequent assets use Dutch bidding (the same hyperparameters as HIP-1). The deployer receives 7 reserved deployment opportunities that can be used at the current bidding price, with no bidding timer.
## Confirmed Standards for the Slashing Mechanism
Slashing Trigger (Confirmed): If malicious market manipulation occurs, validators can deduct the deployer’s collateral through collateral-weighted voting. Even during the 7-day collateral withdrawal queue period, the collateral tokens may still be slashed.
Slashing Percentage Cap (Confirmed):
· Abnormal inputs that lead to invalid state transitions or prolonged network interruption: up to 100%
· Abnormal inputs that lead to temporary network interruption: up to 50%
· Abnormal inputs that lead to reduced network performance or other problems: up to 20%
Note (Confirmed): Slashed collateral tokens will be destroyed, not assigned to affected users; the slashing conditions are unrelated to the composition of the stakers.
## Frequently Asked Questions
#### When will the collateral threshold decrease, and what is the target value?
The documentation confirms that the collateral threshold “will gradually decrease as the infrastructure matures,” but it does not provide a specific timetable for the decrease or a target value. Any portion above the subsequent new threshold can be withdrawn; any already-deployed DEX must still maintain the then-current threshold requirement for at least 183 days after deployment.
#### During the collateral withdrawal queue period, do deployers still face slashing risk?
Yes. The documentation explicitly confirms that even if the deployer has initiated the withdrawal process, during the 7-day collateral withdrawal queue period, the collateral tokens may still be slashed via validators’ collateral-weighted voting.
#### What is the main limitation of HIP-3’s cross-margin functionality?
The documentation confirms: once cross-margin is enabled, the operation is irreversible. Mainnet validators will enforce that deployers enable cross-margin only for assets that meet the established standards, including sufficient observable liquidity, reliable sources of external oracle feeds, and resistance to price manipulation. Assets expected to experience more than one day-over-day 50% volatility event per month will not qualify for cross-margin.
