Hyperliquid announced that on the next network upgrade, order priority fees will go live for all perpetuals previously limited to IOC orders on HIP-3 assets in alpha mode. This expands the existing priority fee system; launched in alpha around April across the entire perp lineup.
Users can pay in HYPE tokens to gain execution priority: Gossip (read) priority — Speeds up data reads ~10 ms reduction per auction slot. Speeds up order processing ~45 ms end-to-end latency reduction per 1 bp of fee paid. The max order priority fee cap was already lowered from 20 bps to 8 bps based on user feedback.
Agents; automated trading bots will be able to transfer funds between different DEXs under the same user — reducing friction for multi-DEX strategies and improving capital efficiency. HIP-3 backstop liquidator will now support withdrawing principal amounts — lowering barriers for builders and liquidity providers.
This upgrade focuses on infrastructure improvements for latency-sensitive trading, better agentic workflows, and more robust liquidation mechanics. Priority fees let you bid for faster fills when the order book is hot, helping compete with faster actors.
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More usage especially if volume grows could increase demand and burns, as fees are paid in HYPE. It internalizes some latency and MEV-like dynamics while keeping the core exchange fast and fair. Hyperliquid continues shipping production upgrades quietly rather than long roadmaps.
Hyperliquid’s priority fees consist of two independent systems designed for latency-sensitive traders especially high-frequency or agentic bots. They let you pay in HYPE to gain advantages in data visibility or order execution. Both fees are burned, creating deflationary pressure on the token supply.
The upcoming platform update will expand order priority to all perpetuals previously limited to IOC orders on HIP-3 assets in alpha. Gossip priority was already live in its current form.1. Gossip (Read) PriorityThis prioritizes receiving market data, transaction streams, and balance updates earlier than other nodes/clients.
There are 5 parallel auction slots. Each slot runs a 3-minute auction cycle. Lower slot IDs provide faster gossip and read access. Winners get their IP’s data streamed earlier, even before full L1 execution in some cases. This affects split client blocks and normal responses. It only impacts reading data — not sending orders.
Among executable orders, priority is linear based on the rate paid. It applies to batches of orders where every order in the action is IOC and on perp assets expanding to all perps in the next update. Roughly ~45 ms end-to-end latency reduction per 1 bp paid, though this varies with network conditions and competition. Only on supported perp assets; HIP-3 initially; full rollout coming.
The 10x reset can make costs spike if you bid right after a new cycle. Priority fees are tiny on average in early data; fractions of a cent per fill at low bps, but they scale with notional and competition. Best for competitive strategies where even 10–50 ms matters. The system internalizes some latency and MEV dynamics by making speed explicitly payable in HYPE, rather than relying purely on infra advantages.
It keeps the core matching fair; price-time priority still applies at the same level while adding a market-based layer on top. Once the next upgrade hits, order priority becomes much more broadly usable. Test on small sizes first, as real-world gains depend on how contested the order book is at that moment.
The exact timing of the next platform update hasn’t been pinned down yet, but it’s expected soon based on the announcement today. If you’re trading perps on Hyperliquid or running bots, this is worth watching closely—test the priority params on smaller sizes first once it rolls out.