Hyperliquid’s fee structure was designed to represent high-volume traders’ interests by being as transparent and community-beneficial as possible. This will go into detail on exactly how Hyperliquidity trading fees work, how they have changed throughout the protocol’s timeline, and how the structure stacks against other protocols.
Hyperliquid Trading Fee Structure Overview
Since March 11th, Hyperliquid has implemented a trading fee schedule based on a rolling 14-day trading volume. All participants will, therefore, have a fair and dynamic calculation of their fees based on their recent activity. Here are the key aspects:
Volume Tracking: The tracking of the volume began on February 26th, ensuring the fees are calculated on this rolling 14-day window. That means active traders will see their fees adjust promptly with the change in their trading activity.
Account Volumes:
- Sub-accounts: The volume of sub-accounts flows to the master account total in order to ensure that all sub-accounts have the same fee tier consistency. This benefits quite a lot, especially the institutional trader, who is likely to handle a variety of accounts.
- Vaults: Volumes of vaults are isolated from the master accounts and allow for the calculation of discrete fees for vault-generated activities.
Referral Discounts: Referral benefits and discounts apply only to the first $25 million in trading volume. These benefits should be capped to ensure that no single new or existing user is subsidized.
VIP and Market Maker Tiers
VIP Tiers
Traders will be divided based on VIP tiers created on 14-day trading volume, with better fees applied to higher-tier users. This would incentivize high-volume trading but keep rates competitive with smaller traders:
| Tier | 14-Day Volume | Taker Fee | Maker Fee |
| 0 | ≤ $5M | 0.035% | 0.010% |
| 1 | > $5M | 0.030% | 0.005% |
| 2 | > $25M | 0.025% | 0.000% |
| 3 | > $100M | 0.023% | 0.000% |
| 4 | > $500M | 0.021% | 0.000% |
| 5 | > $2B | 0.019% | 0.000% |
Market Maker Tiers
Market makers benefit from maker rebates, further reducing their trading costs and incentivizing liquidity provision. These rebates are especially attractive for institutional players who contribute significant liquidity:
| Tier | 14-Day Maker Volume | Maker Fee |
| 1 | > 0.5% | -0.001% |
| 2 | > 1.5% | -0.002% |
| 3 | > 3.0% | -0.003% |
Maker rebates are directly credited to the user’s trading wallet after each trade, providing immediate benefits for liquidity providers. This approach ensures that market makers see tangible rewards for their contributions.
Distribution of Fees
Unlike many platforms where fees benefit the team or insiders, Hyperliquid directs all trading fees to the community. This unique approach reinforces the platform’s commitment to decentralization and user-centric operations. Here’s how the fees are utilized:
1. Community Allocations:
- Fees fund HLP (Hyperliquid Liquidity Providers) and the Assistance Fund. These allocations strengthen the ecosystem and provide robust support for users.
- The Assistance Fund holds most of its assets in HYPE, the native liquid asset of the Hyperliquid L1. This ensures that the fund remains secure and liquid in times of need.
2. On-Chain Security:
- The fund operates transparently via the on-chain system address 0xfefefefefefefefefefefefefefefefefefefefe, showcasing Hyperliquid’s commitment to transparency and decentralization.
- A validator quorum is required for the use of these funds in special circumstances, ensuring a high level of security and consensus.
Historical Context
Hyperliquid has continually evolved its fee structure to align with user needs and market dynamics. Here’s a brief history:
- Closed Alpha Period: During the platform’s mainnet closed alpha, which lasted three months, trading was entirely free. Users paid no gas fees and no trading fees, allowing them to experience the platform’s capabilities without cost barriers.
- Fee Introduction: In June 2023, Hyperliquid introduced a flat fee structure:
- Taker Fee: 2.5 basis points (bps).
- Maker Rebate: 0.2 bps.
- Referral Rewards: Referrers earned 10% of the taker fees paid by their referees.
This gradual introduction of fees reflects Hyperliquid’s commitment to creating a sustainable and competitive ecosystem.
Advantages of Hyperliquid’s Fee Structure
- Competitive Rates: Hyperliquid’s taker fees and maker rebates are among the most competitive in the industry, especially for high-volume traders.
- Community-Centric Model: By directing fees to the community, Hyperliquid ensures that the platform’s growth benefits all participants rather than a select few.
- Transparent Operations: The use of on-chain mechanisms and validator quorums ensures that fee allocations and fund usage remain transparent and secure.
- Dynamic Adjustments: The rolling 14-day volume calculation allows traders to quickly benefit from increased activity, making the fee structure dynamic and responsive.
- Immediate Rebates: Maker rebates are paid out instantly, providing liquidity providers with immediate returns on their contributions.
Conclusion
Whether you’re a retail trader, institutional investor, or market maker, Hyperliquid’s fee structure offers competitive rates, tangible benefits, and a strong commitment to community empowerment. By participating, you become part of a decentralized, transparent, and user-driven trading ecosystem. Hyperliquid is not just a trading platform—it’s a community where your activity fuels mutual growth and sustainability.
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