HIP3 Perpetual Insurance

Try this: 1. Scroll down and set a mark price (e.g. 0.005 = 0.5% risk) → 2. Click Slash on any insured in the table → 3. Watch the oracle flip, funding reverse, and payout compute → 4. Click Route Payout in the event bar

Symbol	Name	Type	Unit	Description
V_i	Coverage notional	Input	HYPE	Insured's at-risk capital (stake), fixed at registration
π_i	Risk parameter	Input	%	Auditor-certified expected loss probability
V_i · π_i	Risk-weighted notional	Output	HYPE·%	Insured's contribution to pool risk. Drives premium apportionment
w_i	Premium weight	Output	%	V_i · π_i / Σ(V_j · π_j) — insured's share of total pool premium
V_pool	Pool notional	Output	HYPE	Σ V_i — total at-risk capital across all active insureds
π_pool	Pool risk (weighted)	Output	%	Σ(π_i · V_i) / V_pool — capital-weighted average risk
Σ(V_i · π_i)	Aggregate risk-weighted notional	Output	HYPE·%	piV_pool — denominator for premium weight calculation
P(t)	Mark price	Input	decimal	Order book consensus on pool risk. You set this (simulating the market)
O(t)	Oracle price	Output	decimal	Normal: ≈0 (keep-alive). Event: V_i · λ_i / V_snap
f(t)	Funding rate	Output	%/hr	P(t) − O(t), capped at ±f_max. Determines who pays whom per interval
f_max	Max funding rate	Constant	%	Hyperliquid system constant. Caps funding per interval
Δt	Funding interval	Constant	1 hour	Hyperliquid constant — funding settles every hour
λ_i	Loss fraction	Input	%	Fraction of V_i lost in a slash event
V_snap	Pool snapshot	Output	HYPE	V_pool frozen at event trigger. Doesn't change during event window
O(T*)	Event oracle	Output	decimal	V_i · λ_i / V_snap — calibrated so perp delivers exact payout
N*	Payout intervals	Output	hours	⌈O(T*) / f_max⌉ — funding intervals needed to deliver full payout
Payout	Loss compensation	Output	HYPE	V_i · λ_i — exact amount owed to slashed insured
Ceiling excess	Rounding surplus	Output	HYPE	V_snap · N* · f_max − V_i · λ_i — always ≥ 0, accumulates as buffer
M_i	Required margin	Design	HYPE	V_i / L_max — minimum margin the layer must post per insured
L_max	Leverage cap	Design	integer	⌊1 / ΔP_max⌋ — policy choice by pool operator

Symbol

Name

Type

Unit

Description

V_i

Coverage notional

Input

HYPE

Insured's at-risk capital (stake), fixed at registration

π_i

Risk parameter

Input

Auditor-certified expected loss probability

V_i · π_i

Risk-weighted notional

Output

HYPE·%

Insured's contribution to pool risk. Drives premium apportionment

w_i

Premium weight

Output

V_i · π_i / Σ(V_j · π_j) — insured's share of total pool premium

V_pool

Pool notional

Output

HYPE

Σ V_i — total at-risk capital across all active insureds

π_pool

Pool risk (weighted)

Output

Σ(π_i · V_i) / V_pool — capital-weighted average risk

Σ(V_i · π_i)

Aggregate risk-weighted notional

Output

HYPE·%

piV_pool — denominator for premium weight calculation

P(t)

Mark price

Input

decimal

Order book consensus on pool risk. You set this (simulating the market)

O(t)

Oracle price

Output

decimal

Normal: ≈0 (keep-alive). Event: V_i · λ_i / V_snap

f(t)

Funding rate

Output

%/hr

P(t) − O(t), capped at ±f_max. Determines who pays whom per interval

f_max

Max funding rate

Constant

Hyperliquid system constant. Caps funding per interval

Δt

Funding interval

Constant

1 hour

Hyperliquid constant — funding settles every hour

λ_i

Loss fraction

Input

Fraction of V_i lost in a slash event

V_snap

Pool snapshot

Output

HYPE

V_pool frozen at event trigger. Doesn't change during event window

O(T*)

Event oracle

Output

decimal

V_i · λ_i / V_snap — calibrated so perp delivers exact payout

Payout intervals

Output

hours

⌈O(T*) / f_max⌉ — funding intervals needed to deliver full payout

Payout

Loss compensation

Output

HYPE

V_i · λ_i — exact amount owed to slashed insured

Ceiling excess

Rounding surplus

Output

HYPE

V_snap · N* · f_max − V_i · λ_i — always ≥ 0, accumulates as buffer

M_i

Required margin

Design

HYPE

V_i / L_max — minimum margin the layer must post per insured

L_max

Leverage cap

Design

integer

⌊1 / ΔP_max⌋ — policy choice by pool operator

Registered Insureds

Click + to add, − to remove, or Slash to trigger an event. Premium is apportioned by risk-weighted share.

Name	V_i (HYPE)	π_i (%)	V_i · π_i	w_i (%)	Premium / hr

Slashed-

λ_i-%

V_snap-

O(T*)-

Payout-

Pool State

Insured Count0

V_pool (Σ V_i)0 HYPE

π_pool (weighted)0%

Σ(V_i · π_i)0

Event ActiveNo

Oracle State

What the apportionment layer pushes to HyperCore

ModeNORMAL

Oracle O(t)0.0001

Δt1 hour

Funding Flows

Mark Price P(t)

f_max (HL constant) 0.1%

Funding Rate f(t)-

Direction-

Shorts (Insurers) Earn (Normal) / Pay (Event)

Total / hr-

Per-Insured Breakdown

Insured	V_i	Flow / hr	w_i

Notation Index

Registered Insureds

Pool State

Oracle State

Funding Flows

Shorts (Insurers) Earn (Normal) / Pay (Event)

Per-Insured Breakdown

Event Log

Notation Index

Registered Insureds

Slash Event

Pool State

Oracle State

Funding Flows

Shorts (Insurers) Earn (Normal) / Pay (Event)

Per-Insured Breakdown

Event Log