Three Prices Traders Mix Up
On Hyperliquid and most perpetual venues you will see several related numbers:
- Last price — the most recent trade on that venue’s book.
- Index price — typically a fair external reference built from major spot markets (methodology is venue-defined).
- Mark price — the risk price used for unrealized PnL checks, liquidations, and often funding inputs; designed to resist single-venue manipulation and wicks.
Your fill happens near last/bid/ask. Your survival often depends on mark. If you only watch a TradingView candle of last price, you can be wrong about distance to liquidation. Practice on live UI with small size after joining with code HOLYGRAIL.
Why Venues Do Not Liquidate Purely on Last Trade
If liquidations keyed only off last trade, a thin moment or spoof-driven print could cascade liquidations unfairly. Mark price anchors risk to a more robust reference so one off-market trade is less likely to nuke the book. That protects the system — and it means your stop on “chart price” is not identical to the engine’s liquidation trigger.
For oracle and manipulation context across DEXs, see oracle manipulation protection.
Index Price: The External Anchor
Index price answers: “What is a reasonable cash-market-linked fair value right now?” It usually aggregates reputable spot venues with checks for outliers. When spot leads and perps lag (or the reverse), basis appears. Basis is normal; extreme dislocations are where funding and arb desks wake up.
Traders use index awareness to:
- Judge whether perp premium/discount is stretched
- Avoid panic when last trade wicks but index barely moves
- Frame basis and funding trades more honestly
Mark Price: The Risk Engine’s Truth
Mark price is the number to respect for:
- Liquidation checks — crossing maintenance thresholds against mark
- Unrealized PnL display (implementation details can vary; always confirm in UI docs)
- Funding calculations — funding often references premium of perp vs a fair price related to index/mark design
When last price dumps 1% on a thin print but mark barely budges, you may keep the position even if your chart looks terrifying. The opposite also happens: mark can move against you while your preferred chart feed looks calmer. Train your eyes on the same prices the engine uses.
Practical Implications for Hyperliquid Traders
Stops and liquidation buffers
Place stops with buffer beyond noise, and know approximate mark-based liquidation. Do not set leverage so that liquidation sits inside normal mark volatility for your hold time. Pair with stop-loss strategies and liquidation prevention.
Scalping last price
Scalpers still trade the book — bid/ask and last matter for entry. Just do not size as if mark equals last always. In fast markets, track both.
API and bots
Bots that risk-manage only on last trade prints will false-stop or under-risk. Feed mark (and index if needed) into risk checks. See API trading bot guide for integration mindset.
Funding, Premium, and Fair Price
Funding exists to tether perp demand to spot-linked fair value over time. When perps trade rich to fair value, longs typically pay shorts (and vice versa), with exact formulas venue-specific. Understanding mark/index helps you read whether a “pump” is book heat or broader market move. Background: Hyperliquid funding rate explained.
Checklist: Before You Size a Levered Position
- Where is mark vs last right now?
- What is estimated liquidation price on mark terms?
- Is funding aligned with how long I will hold?
- Am I stopping on structure using a price definition I actually monitor?
- If mark and last diverge, do I have a rule (hold, reduce, flat)?
Price vocabulary is risk vocabulary. Master it once; every later strategy guide gets safer.
Watch Mark and Index on Hyperliquid
Join with code HOLYGRAIL, open a major pair, and compare last, mark, and index for a full session before increasing leverage.
Join Hyperliquid with HOLYGRAIL