# Hyperliquid (/venues-and-markets/hyperliquid)





Hyperliquid is an on-chain perpetuals venue built on its own layer-1 (HyperCore). Orchard is a non-custodial execution layer on top of it: we route your perp orders with Pear's builder code attached, execute the legs together, while your funds stay in your own Hyperliquid account.

**Key facts**

* **Type:** on-chain perp orderbook (HyperCore), not a CEX, not an off-chain matching engine
* **Collateral:** USDC-margined perps only
* **Custody:** non-custodial, collateral sits in *your* Hyperliquid account
* **Where:** Orchard web app (retail), Pear Pro, and Vaults

## How it works [#how-it-works]

1. **Builder-code setup**: each order carries a builder payload identifying Pear and the fee. The first time you connect a Hyperliquid account, you sign a one-time builder-fee approval authorizing Pear's builder address and a max fee. Without it, Hyperliquid rejects builder-code attribution.
2. **Perp execution**: orders execute on Hyperliquid's on-chain orderbook. All Pear-executable markets are USDC-margined perps.
3. **Joint dispatch**: the long and short legs are formatted into one batched request and dispatched to Hyperliquid together, minimizing execution mismatch between the legs.
4. **Non-custodial**: you deposit collateral directly to your Hyperliquid account. Pear handles order creation, monitoring, and closure with its builder code attached for attribution and fee tracking.

## Where your funds live [#where-your-funds-live]

Your collateral sits in your Hyperliquid account on **Hyperliquid's own L1 (HyperCore)**, not on Arbitrum. Arbitrum's role is the deposit path: you deposit USDC on Arbitrum (via Hyperliquid's bridge) to fund your Hyperliquid account. Pear's fee rides the order as a builder fee. There is no separate per-trade chain transaction.

## Step-by-step [#step-by-step]

1. **Connect:** link your Hyperliquid trade account (one-time builder-fee approval).
2. **Design:** build your pair or basket (e.g., long BTC, short ETH).
3. **Route:** Orchard formats the legs with the builder code and sends them to Hyperliquid.
4. **Execute:** both orders are dispatched together; Hyperliquid manages margin.
5. **Manage:** track PnL, funding, and rebalances in Orchard; adjust or close any time.

<Callout>
  Hyperliquid charges its own trading fees on top of Pear's. Pear is always a taker on Hyperliquid, so the taker side of Hyperliquid's fee schedule applies. See [Trading fees](/fees/trading-fees) and [Hyperliquid's docs](https://hyperliquid.gitbook.io/hyperliquid-docs).
</Callout>