Hyperliquid Market Making: A Practical Guide

Market making on Hyperliquid means quoting both sides of a perp and earning the spread — plus funding — while carefully managing the inventory you accumulate. Done well it's a steady edge. Done badly, one fast move blows up the book.

Quoting around fair value

A maker continuously posts a bid and an ask around an estimate of fair value. The tighter the spread, the more fills — but the less edge per fill, and the more adverse selection. The art is sizing the spread to the asset's volatility and the depth you're willing to show.

Inventory skew

Every fill leaves you holding inventory. If you're long, you want to sell more than you buy, so you skew your quotes: shade prices down to attract sells and discourage buys. Inventory-aware quoting is the difference between mean-reverting profits and slowly accumulating a position into a trend.

Capturing funding

Perp funding is a second income stream. When funding favors your side, holding inventory pays you on top of the spread. A good MM bot factors expected funding into how it skews and how much inventory it's comfortable carrying.

Risk controls that actually fire

The non-negotiables:

• Per-market exposure limits — hard caps on net position.
• Auto-flatten kill-switch — if exposure or drawdown breaches a threshold, the bot cancels and flattens immediately.
• Latency / staleness guards — stop quoting if market data goes stale.

These aren't optional. They're what let the bot run unattended.

---

We've shipped exactly this — see the Hyperliquid Market Maker case study or our trading-bot services. Talk to us about a maker tuned to your risk limits.