# Hyperliquid Opens Doors to Permissionless Prediction Markets HIP-4 upgrade enables users to create their own prediction markets without permission. - **Source:** [CryptoPotato](https://brifing.si/source/bd22636b-ec8d-42a8-8cca-1937c50e0f6c) - **Published:** 2026-07-20 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/3f58c537-f553-4fbd-9bcb-05b2d381521b ## What is HIP-4 Upgrade? Hyperliquid's new network update allows users to create permissionless prediction markets. This feature, launching first on testnet, will test templates and a staking system before mainnet deployment. Validator-approved templates will ensure markets are clearly defined. ## How Will It Work? Previously only created by validators, prediction markets will now be open to anyone meeting HIP-4 requirements. Validators will vote on standard templates stored on-chain. Users can create identical markets multiple times if desired. ## Financial Incentives and Penalties Becoming a HIP-4 deployer requires staking 500,000 HYPE tokens locked for six months. Poorly defined markets or unresolved markets for over a week will result in stake slashing. All markets must be settled before unstaking. ## Capacity and Fee Sharing Initially, each deployer gets capacity for 100 outcomes or 200 outcome tokens. Future auctions will distribute more capacity. Deployers can set up to 50% fee sharing, though this feature will come in a later update. ## Token Performance Despite the HIP-4 announcement, HYPE token price dropped - 1% in 24 hours and 10% over the week. However, it maintains a 34% yearly gain. Currently trading around $60, it's still 21% below its all-time high of $76.87. ## Industry Growth Context Hyperliquid's move coincides with record growth in prediction markets. June saw $50.7B in trading volume. Q2 2026 reached $113.8B total volume, marking 48.7% quarterly growth, driven by major sports events like UEFA and NBA finals. ## Sources covering this story - https://cryptopotato.com/hip-4-upgrade-hyperliquid-opens-door-to-permissionless-prediction-markets/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._