How pre-IPO trading works on Hyperliquid

Hyperliquid lets you trade pre-IPO companies as perpetual futures: derivatives that track a private company's implied valuation, without you ever owning shares.

These markets exist thanks to HIP-3 ("builder-deployed perpetuals"), which lets independent builders launch their own perp markets directly on Hyperliquid's on-chain infrastructure. A pre-IPO perp for a company like SpaceX or OpenAI is one of those markets.

What you're actually trading

A perp is a contract, not equity. Its price follows an oracle that reflects the company's latest implied valuation. You're taking a position on where that valuation goes: not buying a piece of the company.

• Long or short. Bet the valuation rises or falls.
• Leverage. Amplify your exposure and your risk; positions use isolated margin.
• No expiry. Perpetuals never settle on a date. A funding rate periodically changes hands between longs and shorts to keep the contract price anchored to the oracle.

Which crypto you need (collateral)

Perps on Hyperliquid are collateralized in USDC: your margin, P&L, and liquidation are all denominated in it. You don't need to hold the company's "stock"; you post USDC and take a position.

• Simplest path: deposit native USDC on Arbitrum through Hyperliquid's official bridge (small minimum, about 5 USDC). Funds credit in a couple of minutes.
• From other chains/assets: you can also fund with BTC, ETH, SOL and a handful of other tokens from their native chains; they're converted to USDC on arrival. Some markets also quote in other stablecoins like USDT.
• No gas token needed to trade once you're funded. Trading on Hyperliquid is gasless.

How to trade (step by step)

1. Connect a self-custody wallet: MetaMask, Rabby, Phantom, or any compatible wallet. You hold your own keys; the platform never takes custody of your funds.
2. Fund with USDC as collateral (see above). This USDC backs every position you open.
3. Open the company's market: for example SpaceX or OpenAI from the token selector.
4. Pick a direction. Go long if you expect the implied valuation to rise, short if you expect it to fall.
5. Set your margin and leverage. Your margin is the USDC you commit; leverage multiplies the position size from that margin and moves your liquidation price closer. With isolated margin, only the USDC assigned to that position is at risk.
6. Choose an order type. A market order fills immediately at the current price; a limit order rests until your price is hit.
7. Place the order. It's signed client-side from your wallet and matched on Hyperliquid's on-chain order book.
8. While open, you pay or receive the funding rate periodically, depending on your side, which keeps the contract anchored to the oracle valuation.
9. Close any time by placing the opposite order (or reduce part of it). Your USDC P&L settles to your balance, and you can withdraw back to your wallet whenever you like.

What to keep in mind

Leverage means you can be liquidated if the price moves against you, and lose your margin quickly. Oracle prices for private companies update infrequently and can gap. This is a high-risk derivative, not share ownership, and it may not be available or suitable where you live. Not investment advice.