Glossary
The ten terms the rules depend on: equity, the two loss limits, breach, phase, realized profit, high-water mark, mark price, funding and slippage.
These are the ten words the rules cannot do without. Each one links to the page that explains it in full. Older entries in the rules changelog call a loss limit a "floor". It is the same thing.
Equity
Your balance plus the profit or loss on your open positions, valued at the mark price. Your loss limits are measured on equity. So a position that is losing counts against them before you close it.
More on Trading rules.
Daily loss limit
The most your equity can fall in one day. It is set at 00:00 UTC from the lower of two values: your balance, and what you would hold if you closed every position then. During the day it rises when you close a trade at a new high for the day. It never moves down within a day. Your plan sets its size.
More on Trading rules.
Max drawdown
The most your equity can fall below your starting balance, over the whole life of the account. It is fixed. Profit you make does not raise it, so profit gives you more room above it.
More on Trading rules.
Breach
Your equity touching or falling below either loss limit. We close your open positions at the limit's price and the account fails. On a funded account, profit you have earned and not yet withdrawn is forfeited.
More on Trading rules and If a breach looks wrong.
Phase
One stage of an evaluation, with its own profit target. A 1-Step plan has one phase. A 2-Step plan has two: you pass the first, then trade the second from your starting balance again.
More on Trading rules.
Realized profit
Profit from trades you have closed, after fees, plus the funding your positions paid and received. A position that is still open has no realized profit until you close it. Payouts share realized profit.
More on Payouts.
High-water mark
The realized profit you have already been paid on. A payout covers only profit above it, so the same profit is never paid twice. It carries across a payout, when your balance returns to its start.
More on Payouts.
Mark price
The price we value your open positions at. On crypto markets it is Hyperliquid's mid price, halfway between the best bid and the best ask. On stock, index, commodity and FX markets it is Hyperliquid's mark price. Your equity, your loss limits and your take-profit and stop-loss levels all use it.
More on Placing an order.
Funding
An hourly payment on a perpetual market, at Hyperliquid's funding rate. You pay or receive it on the position you hold at the start of each hour. When the rate is positive, a long pays and a short receives. When it is negative, a short pays and a long receives.
More on Placing an order.
Slippage
The gap between the mid price and the price your order fills at. A market order fills against Hyperliquid's order book, so a larger order fills further from the mid price. Max slippage is a limit you set: an order that is not reduce-only and would fill further away than it is refused. A close, Close All and a Reverse are never limited by it.
More on Placing an order.