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Oracle

The oracle is a core component responsible for supplying Hyperliquid with reliable and timely market prices. It ensures that all derivative markets listed under our DEX trade against an accurate reference price, enabling correct mark pricing, funding calculations, liquidations, and PnL determination.

Each update contains several price types used by different parts of the system:

Oracle Update Components​

  • Oracle Price
    A reference price representing the underlying fair value.
    Used for funding rate calculations to anchor the perpetual price to its underlying.
  • Market Price
    The execution-layer mark price.
    Used for liquidations, take-profit and stop-loss triggers, and unrealized PnL computation.
  • External Perp Prices
    A sanity-check price derived from external perpetual markets.
    Used to limit extreme price deviations and prevent abnormal or manipulated market movements.

Together, these components define the full price state of the market.

Specifications​

  • Update frequency: oracle is expected to publish a new price every 3 seconds.
  • Price bounds: all oracle prices are clamped to 10× the asset’s start-of-day value.
  • Market price movement cap: market price cannot move more than 1% from the previous value per update.
  • OI safety constraint: a market price update is rejected if it would imply open interest exceeding 10× the configured open interest cap.