# Hyperliquid Perps Liquidation volume Methodology

## 1. Overview

Liquidation volume is defined as the total USD value of debt covered or positions force-closed in liquidations across lending and derivatives markets. For Hyperliquid Perps, the daily USD notional value of perpetual contract positions that are force-closed is quantified. Both long and short liquidation events executed on HyperCore are aggregated to determine the total volume. This metric is utilized to analyze market risk, leverage liquidation dynamics, and contract volatility on the platform.

## 2. Data sources

- **Blockchain events**: `node_fills` and `node_fills_without_block_number` events from HyperCore, covering HyperCore

## 3. Step-by-step calculation

### Component A: Hyperliquid Perps fill extraction

- **Purpose**: To isolate perpetual contract fill events from the shared node fill data stream.
- **Logic**: Node fill events are parsed from HyperCore. To isolate Hyperliquid Perps, assets are filtered to exclude those starting with `#` (which are designated as Hyperliquid Outcome Markets) and those containing `@` or `/` (which are designated as Hyperliquid Spot). The remaining assets are classified as perpetual contracts.
- **Key fields**: `coin` (asset identifier), `block_timestamp` (timing), `side` (trade side), `size` (position size), `price` (execution price), `trader_address` (account address), `liquidated_user` (address of the liquidated account).

### Component B: Liquidation identification and notional calculation

- **Purpose**: To identify forced liquidation fills and calculate their USD value.
- **Logic**: Liquidation events are identified by filtering for records where the liquidated user field is not null and the trader address matches the liquidated user address, ensuring only the liquidated party's forced close leg is captured. The USD notional value of each liquidation is calculated by multiplying the position size by the execution price.
- **Key fields**: `size` (position size), `price` (execution price), `liquidated_user` (liquidated account), `trader_address` (trader account).

### Component C: Daily aggregation and side classification

- **Purpose**: To aggregate liquidation volumes by day and classify them into long and short liquidations.
- **Logic**: Liquidation notional values are aggregated daily starting from May 26, 2025, which is established as the first full day of available node fill data. Long liquidations are calculated by summing the USD notional value of fills where the side is designated as 'A'. Short liquidations are calculated by summing the USD notional value of fills where the side is designated as 'B'.
- **Key fields**: `side` (trade side), `notional_usd` (calculated USD value).

### Component D: Final metric aggregation and zero-filling

- **Purpose**: To combine long and short liquidations into a single metric and finalize the time series.
- **Logic**: Daily liquidation volume is calculated by summing the long and short liquidation volumes. The daily time series is finalized by ensuring all days are represented, with missing days set to zero.
- **Key fields**: `long_liquidations` (long liquidation volume), `short_liquidations` (short liquidation volume).

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

USD value of debt covered or positions force-closed in liquidations.

Liquidation volume

Derivative exchanges

Hyperliquid generates revenue through on-chain perpetual futures and spot trading, facilitated by its HyperCore execution layer. Every order, trade, and liquidation occurs on-chain with one-block finality, enabling ultra-low latency and transparent trading. Liquidity providers and market makers earn supply-side fees from bid-ask spreads and transaction rebates, while network participants can earn governance and staking rewards via the HYPE token.

Hyperliquid is a layer-one (L1) blockchain purpose-built for trading and decentralized finance. It combines: HyperCore, the high-performance trading engine powering perpetuals, spot markets, and oracles; HyperEVM, a fully compatible smart contract layer enabling developers to build DeFi applications such as lending, vaults, governance, bridges, and stablecoins directly on-chain. Its consensus mechanism, HyperBFT, is a custom algorithm inspired by HotStuff, optimized for throughput (200k+ orders/sec) and deterministic finality. The HYPE token underpins the network, granting holders rights to participate in governance, staking, and securing the protocol — effectively letting users own a share of the Hyperliquid ecosystem.

HYPE tokenholders own, govern, and secure the Hyperliquid network through on-chain governance. The Hyper Foundation oversees community governance and ecosystem growth, ensuring decentralization and alignment of incentives across traders, builders, and validators. Hyperliquid’s investors include Tioga Capital Partners, Collab+Currency, Infinite Capital (San Juan), Optimista Capital, and RockawayX, all holding minority venture capital positions.