Hyperliquid has announced the activation of the cross-margin feature for its HIP-3 permissionless perpetual contract market on the testnet. According to ChainCatcher, this feature is not yet available on the mainnet but qualifies for the mainnet-level bug bounty program.
To utilize cross-margin trading, the deployer of HIP-3 must first enable it for a specific asset. Under a unified account, all cross-margin perpetual contracts using the same collateral asset can share margin, even across multiple decentralized exchanges (DEXs). However, assets on different DEXs are protected up to their maintenance margin levels to prevent automatic liquidation due to significant price fluctuations on other DEXs.
This innovative 'protective cross-margin' system ensures solvency without compromising user experience. The cross-margin feature is not designed for DEX abstract interfaces, and related interfaces should not allow cross-margin trading through DEX abstraction. Users are advised to use unified accounts or combined margins to achieve the expected behavior of HIP-3 asset cross-margin.