How to Deploy Perps on Hyperliquid via HIP-3

What Is HIP-3 and How It Works

HIP-3 (Hyperliquid Improvement Proposal 3) defines the builder code system that powers third-party front-ends on Hyperliquid.

• Builder codes: A builder code is a unique identifier registered on Hyperliquid that associates orders with a specific front-end operator. When a user places an order through your front-end, the builder code is attached to the order data.
• Builder fees: Each order with a builder code includes a builder fee, specified in basis points. This fee is charged to the trader on top of Hyperliquid's base fee and is routed to the builder's wallet address.
• Fee flow: When a trade executes, the trader pays the base fee (to Hyperliquid) plus the builder fee (to your builder wallet). Your revenue is the builder fee multiplied by total trading volume through your front-end.
• No custody: HIP-3 front-ends never custody user funds. All deposits, margin, and settlements are handled by the Hyperliquid L1. Your front-end is an interface layer only.
• Permissionless access: Any team can build a HIP-3 front-end. There is no approval process beyond registering a builder code. This makes it the most accessible way to launch a perps trading business on Hyperliquid.

Step 1: Register Your Builder Code

Builder code registration is the first step to earning fees through HIP-3.

1. Prepare a wallet. The builder code is tied to a wallet address that will receive fee revenue. Use a dedicated wallet for builder operations, separate from any trading wallets. Consider a multisig wallet for added security on the fee collection address.
2. Register on-chain. Submit a builder code registration transaction to Hyperliquid. This associates your chosen builder identifier with your wallet address. The registration process is documented in Hyperliquid's builder program resources.
3. Configure fee parameters. Set your default builder fee rate. This can be overridden per-order, but a default simplifies implementation. Common builder fees range from 1 to 5 basis points. A 3 bps builder fee means you earn $3 per $10,000 in trading volume.
4. Test on testnet. Register a separate builder code on Hyperliquid's testnet environment. Use this for all development and testing before going live on mainnet. Verify that fees accrue correctly to your builder wallet.

Step 2: Build or License the Front-End

You need a user-facing trading interface that connects to Hyperliquid and attaches your builder code to orders.

1. Option A: Build custom. Develop a trading interface from scratch using Hyperliquid's API. This gives maximum control over UX, features, and branding but requires significant front-end development expertise. Expect 3-6 months of development for a production-quality interface.
2. Option B: Use a whitelabel platform. Services like perps.studio provide pre-built trading interfaces that can be branded with your identity and configured with your builder code. This reduces launch time to weeks rather than months.
3. Option C: Fork an open-source front-end. Some community projects provide open-source Hyperliquid trading interfaces. Forking one gives you a starting point but requires ongoing maintenance as Hyperliquid's API evolves.

Regardless of approach, the front-end must implement these core features: wallet connection, deposit and withdrawal flows, order placement with builder code attachment, position management, and real-time market data display.

Step 3: Implement Builder Code in Order Flow

The technical integration point for HIP-3 is in the order submission flow. Every order must include your builder code and fee specification.

1. Modify order payload. When constructing an order for submission to Hyperliquid's Exchange API, include the builder fee fields in the order structure. The exact field names and format are specified in Hyperliquid's API documentation and may include the builder address and fee rate in basis points.
2. Sign the complete order. The builder fee fields are included in the EIP-712 typed data that the user's wallet signs. This means the user explicitly agrees to the builder fee as part of their order authorization.
3. Handle agent wallet orders. If your front-end uses Hyperliquid's agent wallet system for smoother UX, ensure the agent wallet signing flow also includes the builder fee fields. The agent wallet authorization should cover orders with builder fees.
4. Validate fee inclusion. Add a check in your order submission code to verify that every order includes the builder code before sending to the API. Missing builder codes mean lost revenue. Log any orders submitted without a builder code for debugging.

Test the complete flow on testnet: place an order with your builder code, verify it executes, and confirm that the builder fee is credited to your builder wallet.

Step 4: Optimize Revenue and User Experience

Once the basic integration works, optimize both the revenue model and the user experience to maximize the value of your HIP-3 deployment.

• Dynamic builder fees. Consider varying your builder fee based on context. Offer lower fees for high-volume traders (fee tiers), promotional rates during launch, or higher fees for premium features. Implement this logic in your order construction code.
• Transparent fee display. Show traders the total fee they will pay (base fee + builder fee) before order confirmation. Transparency builds trust and reduces complaints. Some platforms display a comparison showing their total fee versus competitor rates.
• Referral system. Implement a referral system where existing users share referral links. Track which users were referred by whom and optionally share a portion of builder fee revenue with referrers. This creates organic growth.
• Volume incentives. Offer builder fee rebates or trading rewards for reaching volume milestones. This encourages concentrated trading on your platform rather than splitting across multiple front-ends.
• Revenue dashboards. Build internal dashboards tracking daily volume, builder fee revenue, unique traders, average trade size, and revenue per user. These metrics guide business decisions and demonstrate traction to stakeholders.

Step 5: Launch and Scale

A HIP-3 deployment follows the same launch process as any exchange, but with some Hyperliquid-specific considerations.

1. Testnet validation. Run your complete front-end against Hyperliquid testnet for at least one week with active testing. Verify order placement, cancellation, position management, PnL calculations, and builder fee accrual all work correctly.
2. Mainnet soft launch. Switch to mainnet APIs and open access to a small group of beta testers. Monitor error rates, latency, and fee accrual closely. Verify that mainnet behavior matches testnet behavior.
3. Public launch. Open the platform publicly with launch incentives (reduced builder fees, trading competitions, referral bonuses). Announce through crypto media, social channels, and community partnerships.
4. Monitor Hyperliquid updates. Hyperliquid actively develops its protocol with new features, pairs, and API changes. Subscribe to their developer announcements and update your integration promptly when breaking changes are introduced.
5. Scale infrastructure. As volume grows, ensure your front-end infrastructure scales with demand. WebSocket connections, API request rates, and page load times should all be monitored and optimized for growing user counts.

The reference implementation Everex (everex.pro) demonstrates a production HIP-3 deployment built on perps.studio infrastructure, showing the level of polish and functionality achievable with this approach.