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Failure Modes

System behavior during outages and degraded conditions.

Design Philosophy

Hypercall prioritizes availability over strict consistency. During failures:

  • Trading continues where possible
  • Failed components are isolated
  • Users receive explicit errors rather than stale data

L1 Downtime

If Hyperliquid L1 (HyperCore) becomes unavailable:

FunctionBehavior
Order MatchingContinues off-chain
SettlementsQueued until L1 recovers
DepositsBlocked until L1 recovers
WithdrawalsBlocked until L1 recovers
LiquidationsContinue based on last known positions

Recovery is automatic once L1 is available again.

Oracle Failures

Price Oracle

If the price oracle becomes unavailable:

ImpactBehavior
New OrdersRejected (no reference price)
Margin CalculationsFail with error
Liquidation ChecksUse last known price

Recovery is automatic when the oracle returns.

IV Oracle

If the IV oracle fails:

ImpactBehavior
New OrdersMay be rejected depending on margin mode
Option PricingFalls back to intrinsic value
Margin CalculationsUse conservative estimates

Settlement Failures

Oracle Down at Expiry

Settlement prices use a 30-minute TWAP window before expiry. If oracle data is unavailable:

  1. Partial outage: TWAP computed from available samples
  2. Complete outage: Settlement delayed until data available or manual intervention

The TWAP algorithm is designed to resist manipulation—see Oracles for details.

API Downtime

If the Hypercall API becomes unavailable:

ComponentStatus
On-chain tradingFunctional via direct contract calls
PositionsSafe on-chain
Open OrdersRemain in orderbook
WebSocket subscriptionsDisconnected

Recommendations

  • Implement reconnection logic with exponential backoff
  • Cache critical data locally
  • Check GET /health before trading
  • Use on-chain methods as fallback for critical operations

Health Endpoint

EndpointPurpose
GET /healthBasic liveness check
GET /readyFull readiness including dependencies

Incident Communication

During incidents, updates posted to: