Market Making on HIP-4

How it works

The bot picks one outcome on an event and posts buy and sell limit orders around the midpoint (or whichever reference price you select). As fills come in, it rebalances and re-quotes to keep your inventory and spread in line with your configuration.

Because HIP-4 settles natively on Hyperliquid, you do not need to split USDC into Yes/No share tokens before launching the bot. You only need cash available in your Hyperliquid account; the bot will buy and sell outcomes directly.

HIP-4 MM has two restrictions you should know before you start:

1. Minimum margin is $20. This is higher than Polymarket MM and reflects Hyperliquid's per-order 10 USDH floor — the bot needs enough margin to place sensible buy and sell legs that each clear the exchange minimum.

2. MM only runs on markets priced between 10¢ and 90¢. If either outcome on the event has crossed those extremes, the form will show "MM cannot run on Hyperliquid markets when either outcome is at or beyond 10¢ / 90¢" and the submit button will stay disabled. Wait for the market to come back inside the band, or pick a different event.

Getting started

1. Open Predict → pick an HIP-4 event → choose an outcome.

2. Switch to the MM tab on the event page. This is the same tab used for Polymarket MM; it adapts to whichever venue the event belongs to.

3. Set your parameters and launch.

MM form parameters

These are the same fields as Polymarket MM. Behavior is identical.

• Margin: Minimium Margin is $20 for Market Making. The bot splits margin across buy and sell legs (and across grid layers if you're in Grid or RGrid mode). Each individual placement must clear Hyperliquid's 10 USDH minimum order size, so margin needs to be sized accordingly — not the $1 floor you may have seen on Polymarket. As a rule of thumb, start with at least enough margin that even your smallest grid layer comfortably exceeds $10 per side.

• Reference Price

  • Mid (default): quote around the live midpoint.

  • Grid

  • RGrid

• Directional Bias (Mid only): Short, Neutral, Long.

• Grid Reset Threshold: 0.05% to 1%.

• Participation Rate:

  • Aggressive (10% volume target, 5m–1h)

  • Normal (5% target, 10m–3h)

  • Passive (1% target, 30m–24h)

• Spread: -50 to +50 bps. Negative = tighter / more aggressive.

• Stop Loss / Take Profit: auto-exit thresholds. A 10% stop loss is a reasonable default.