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What Are Hyperliquid Builder Codes (HIP-3)

Builder codes are Hyperliquid's revenue-sharing system for frontends. When a trader uses a frontend like 10X or Phantom to place a trade, a small fee (typically 0 to 0.01% of the trade) goes to the frontend's builder code. The frontend that refers the trade earns a cut of every order. This is part of HIP-3, Hyperliquid's permissionless market-making framework.

How builder codes work

Every Hyperliquid frontend registers a builder code with the protocol. When a user trades through that frontend, the builder code is attached to the order. Hyperliquid routes a portion of the trading fee to the builder code owner.

The builder sets their own fee rate. Some charge 0% (competing on UX alone). Others charge up to 0.01% on top of the protocol's base fee. The trader sees the total fee, not the split.

Why builder codes matter for traders

Builder codes are the reason Hyperliquid has 20+ frontends competing for your business. Each frontend earns money by making your trading experience better. Better UX, better mobile apps, better analytics. Competition drives quality up and fees down.

As a trader, you don't need to think about builder codes. The fee is already baked into your trade. But if you're comparing frontends, check the builder code fee. A frontend that charges 0.01% builder fee on top of Hyperliquid's 0.035% base fee means you're paying 0.045% total per trade.

Builder code economics

Phantom earns roughly $100,000 per day in builder code revenue. That's $36 million annualized from Hyperliquid trading fees alone. This is public on-chain data.

10X, TradeXYZ, and other frontends also earn builder code revenue proportional to the volume they generate. The more traders a frontend attracts, the more it earns.

This creates a flywheel: frontend earns fees, invests in better UX, attracts more traders, earns more fees. Hyperliquid's builder code system effectively turned trading UI into a competitive market.

HIP-3: the broader framework

HIP-3 is the Hyperliquid Improvement Proposal that governs permissionless market listing and builder codes. Before HIP-3, listing a new market on Hyperliquid required governance approval. After HIP-3, anyone can list a new perpetual futures market by putting up collateral.

The lister earns 50% of all trading fees for that market. If you listed the AAPL perp and it does $10M in daily volume at 0.035% fees, you'd earn about $1,750 per day. The lister also controls the market's oracle configuration and initial parameters.

Frequently asked questions

Do all Hyperliquid frontends charge a builder code fee?

No. Some frontends set their builder code fee to 0%, earning nothing from trades. Others charge up to 0.01%. Check the frontend's fee disclosure or look at the on-chain builder code settings.

Can I build my own Hyperliquid frontend?

Yes. Hyperliquid's API is public and permissionless. Register a builder code, build a frontend, and earn fees on every trade that flows through your app. No approval process needed.

How much does Phantom earn from builder codes?

Approximately $100,000 per day as of April 2026, based on on-chain data. This makes Phantom one of the largest earners in the Hyperliquid builder ecosystem.

Does the builder code fee come out of my profits?

The builder code fee is added to or included in the trading fee you pay per trade. It's a cost of the trade, not a deduction from your PnL. On most frontends it's 0-0.01% per trade.

What's the difference between a builder code and a referral code?

Builder codes are protocol-level fee routing for frontends. Referral codes are typically frontend-level programs for individual users. Builder codes are on-chain and earn from all volume through a frontend. Referral codes earn from specific referred users.

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Last updated 2026-05-17