Scar reads the best bid and ask straight from Hyperliquid's order book, inside the same block as your trade, through a precompile built into HyperEVM. You enter and exit at the mid. No spread, no funding, no slippage, and no separate oracle that could lag behind the market.

If the book is broken or wider than a set limit, Scar refuses to trade on it rather than price you off a bad quote.

There is no order book and no other trader on the other side. Every position is against the LP. Each one is isolated: its margin is all it can lose, and it closes in full.

At 1000× a 0.1% move erases the margin. Liquidation fires five basis points earlier, so at 1000× that is a 0.05% move. Crossing the liquidation price forfeits the whole margin, even if you were about to close.

Losses cost exactly the loss. Wins pay a haircut that depends on how far the price moved. Tiny moves keep little, big moves keep almost all:

you keep = raw gain × 1 / (1 + 1/(move × 4000) + 0.0002/move)

A 0.05% win keeps about 53%. A 1% win keeps about 96%. A 2% win keeps about 98%. The terms your position opened with are fixed on chain; nobody can change them while it is open.

Nobody seeded the LP and nobody can deposit into it. It fills only from traders' losses. When you close a winner, your margin comes back at once. The profit is paid from the LP if it can cover it, and otherwise joins a public queue, first in first out, that future losses pay down.

This means a win can take time to pay, especially early. The queue is real on-chain debt, not a haircut, but there is no date on it.

2% of every loss the LP books goes to the team. While winners wait in the queue there is no fee: the whole loss goes to paying them.

Anything the LP holds past its $5M cap goes to the team too, but never while a winner is waiting, and the cap can never be set below $2M.

The owner can list markets, pause opening, and tune fees and limits inside hard bounds written into the contract; the loss fee can never pass 5%. The owner cannot move your balance, the LP, or the queue, and cannot change an open position's terms. Pausing a market freezes its price so open positions can still close.

• — Leverage this high usually ends in liquidation. Expect to lose the margin.
• — Queued wins wait for future losses. If trading dries up, the queue does too.
• — Someone who can move Hyperliquid's book for a block could trade against a distorted mid. The spread limit, the haircut and the open-interest caps reduce this; they do not make it impossible.
• — These are new contracts. They are tested, but not yet audited.