Coinbase has added Hyperliquid perpetuals to its Base App, giving eligible users a new way to trade crypto derivatives without leaving the app. The feature offers up to 50x leverage on selected markets and covers more than 290 perpetual markets.

The move brings Hyperliquid, one of the biggest onchain derivatives platforms, into Coinbase’s consumer-focused Base App.

What are Hyperliquid perpetuals?

Hyperliquid perpetual derivatives are contracts that enable investors to make bets on the value of the asset without purchasing the asset itself. Traders will be able to go long when they believe prices will increase or go short when they believe prices will decrease.

One difference between perpetual derivatives and regular futures is that perpetual derivatives do not have a specified expiry date. They track the price of an underlying asset, allowing traders to keep positions open as long as they meet the required margin conditions. For more insights on cryptocurrency derivatives and digital assets, visit Bitavolt.

This feature enables users of the Base App to participate in markets tied to Bitcoin, Ethereum, other cryptocurrencies, tokenized stock markets, and other commodity markets. The leverage varies with each market and may be as high as 50x for certain contracts.

How the Coinbase integration works

Coinbase is not running a new derivatives exchange inside Base App. Instead, Hyperliquid provides the trading infrastructure behind the feature.

Users can open, manage and close positions through the Base App interface, while the third-party protocol handles key parts of the trade, including execution, margin requirements, funding, liquidation and settlement. Coinbase’s terms also make clear that these transactions are processed by the third-party protocol rather than Coinbase itself.

This makes the Hyperliquid perpetuals integration simpler for traders who already use Base App.

Coinbase says perpetuals make up roughly 75% of crypto trading volume and that the feature was one of the most requested additions from its active Base App users.

Up to 50x leverage comes with high risk

The biggest headline around the launch is 50x leverage. Leverage allows traders to control a larger position with a smaller amount of capital.

For example, with 50x leverage, $1,000 of margin can control a position worth $50,000. But losses can also grow very quickly. A relatively small move against a leveraged position can lead to liquidation.

Coinbase warns that the Hyperliquid perpetuals feature can result in the loss of some or all of a trader’s collateral. Funding costs, market volatility, low liquidity and slippage can also affect the final result.

Because of this, the product is aimed more at experienced traders than people looking to simply buy and hold crypto.

Where is the product available?

The Base App’s Hyperliquid perpetuals feature is not available to users in the United States, United Kingdom, Canada and some other restricted jurisdictions.

Coinbase already offers perpetual futures through its own derivatives services in some eligible markets. The Base App integration is different because the trades are handled by a third-party perpetual futures protocol.

What does this mean for Coinbase?

The launch gives Coinbase another way to keep active traders inside its ecosystem. For Hyperliquid, the deal provides access to Coinbase’s large user base and gives its trading infrastructure a wider retail reach.

The Hyperliquid perpetuals launch also fits Base App’s changing strategy. Coinbase originally promoted Base App as an “everything app” with trading, social features, messaging, creator tools and other services. More recently, trading, payments, stablecoins and prediction markets have become bigger parts of its focus.

What could it mean for crypto markets?

The Hyperliquid perpetuals integration could bring more users and trading activity to onchain derivatives. It also makes leveraged crypto trading easier to access through a familiar Coinbase-linked interface.

That could increase competition between centralized exchanges and onchain trading platforms.

However, easier access does not remove the risks. More leverage can mean faster liquidations during sharp market moves. Traders should understand the contract, funding rates, margin rules and liquidation risks before opening a position.

For now, the Hyperliquid perpetuals launch is an important step in the growing connection between major crypto platforms and onchain derivatives.

FAQs

1. What are Hyperliquid perpetuals?

They are crypto derivative contracts that let traders speculate on asset prices without owning the underlying assets.

2. How much leverage does Base App offer?

Eligible users can access up to 50x leverage on selected markets, although the limit varies by asset.

3. Is the product available in the US?

No. The Base App perpetuals feature is currently unavailable in the US, UK, Canada and some other restricted regions.

4. Does Coinbase execute these trades?

No. Hyperliquid provides the third-party infrastructure that handles execution, settlement and other key parts of the trading process.

5. Are perpetual futures risky?

Yes. Leverage can magnify both gains and losses, and positions can be liquidated if losses become too large.