Who says decentralized exchanges (DEXs) can’t compete with the trading volumes of centralized platforms?
Hyperliquid, a decentralized exchange (DEX), is rewriting this narrative. As of march 13, the DEX has processed over $1 trillion in trading volume to date.
But with great volume comes great responsibility. As recent market event served as a wake-up call, Hyperliquid’s trading activity and open interest surge, they are placing thier margining system to a test.
The Hyperliquid team didn’t waste a moment, diving into an immediate review to dissect the scenario and brainstorm ways to shore up defenses against similar turbulence. “Risk management isn’t just a buzzword for us—it’s the backbone of what we do,” the team asserted. “We’re always working on it, even if we don’t shout about it daily.”
The result? A network upgrade slated to roll out after 0:00 UTC on March 15, 2025, with a bold tweak: a 20% margin ratio requirement for all margin transfers. This applies to any funds leaving cross wallets or isolated margin positions—think withdrawals, perp-to-spot transfers, or tweaks to isolated margin.
This update is intended to maintain healthier margin requirements and reduce the systemic impact of large positions with hypothetical market impact upon closing.
The Team also cleared that users can still trade with the same leverage, up to 40x. This change only affects removing unrealized PnL on open positions (e.g., withdrawing).
New cross margin positions won’t feel the pinch, and for isolated margin trades, the rule only kicks in if cross margin usage would exceed 5x leverage post-opening.
