Frequently asked questions about Hyperliquid perpetuals on Wraith Wallet
⚠️ Note: This article is a work in progress and may contain incomplete or unverified details.
Hyperliquid perpetuals integration in Wraith Wallet
Wraith Wallet integrates directly with Hyperliquid, a decentralised perpetual futures exchange built on its own Layer 1 blockchain. This lets you trade perpetual contracts directly inside Wraith Wallet, with fast on-chain execution for speculating on asset prices without expiry dates.
Below are explanations of key terms so you can better understand how perpetual futures work when trading through Wraith Wallet.
What is a perpetual open position?
A perpetual open position is an active trade you’ve taken on a perpetual futures contract via Hyperliquid. It can be long (expecting the price to rise) or short (expecting the price to fall) and does not have an expiry.
Opening a position requires selecting leverage, depositing margin (collateral), and placing the order.
Example: Going long on BTC-USD with 10x leverage using USDC as collateral.
What is a perpetual close position?
A perpetual close position is when you exit an open trade, either to take profit or cut losses.
This can be done manually by placing the opposite order (sell if you were long, buy if you were short).
It can also happen automatically if your position is liquidated.
In Wraith Wallet, closing a position settles back on Hyperliquid’s blockchain, returning collateral minus fees or funding costs.
What is perpetual open interest?
Perpetual open interest is the total value of all open perpetual contracts for a given market on Hyperliquid.
High open interest shows strong participation and deeper liquidity.
In Wraith Wallet, open interest data helps you gauge market activity before entering trades.
What is perpetual funding?
Perpetual funding is the mechanism that keeps perpetual prices in line with spot prices.
On Hyperliquid, this involves hourly adjustments based on the mark price vs oracle price.
This ensures perpetuals don’t drift away from the real market price of the asset.
What are perpetual funding payments?
Funding payments are transfers between long and short traders to enforce funding rates.
If funding is positive (perpetual price above spot), longs pay shorts.
If funding is negative, shorts pay longs.
In Wraith Wallet, these payments happen automatically every hour and adjust your margin balance.
What is a perpetual liquidation price?
A liquidation price is the price level where Hyperliquid will automatically close your position to prevent further losses.
It depends on your entry price, leverage, and margin.
In Wraith Wallet, this is displayed as an estimated liquidation price so you can monitor your risk.
What is perpetual leverage?
Leverage allows you to control a larger position with less collateral.
Hyperliquid supports up to 50x leverage.
Example: With 1 USDC at 20x leverage, you control 20 USDC worth of exposure.
In Wraith Wallet, leverage is set per trade, but higher leverage increases risk and chance of liquidation.
Key takeaway
Trading perpetuals with Wraith Wallet via Hyperliquid provides speed, security, and transparency, but comes with significant risk due to leverage. Always manage positions carefully and trade responsibly.
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