> For the complete documentation index, see [llms.txt](https://docs.stratium.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stratium.xyz/hip-3-perpetuals/hip-3-trading-mechanics.md).

# HIP-3: Trading Mechanics

## HIP-3: Trading Mechanics

### What is Builder Code

Builder Code is Hyperliquid's third-party distribution mechanism. Builders operate trading interfaces on top of Hyperliquid's execution layer and earn a fee on volume routed through their terminal.

Stratium's Builder Code terminal is live at [trade.stratium.xyz](http://trade.stratium.xyz).

### How It Works

When you trade through the Stratium terminal, you are trading on Hyperliquid's native orderbooks using Hyperliquid's matching engine. The Builder Code adds a 4.5bps fee on top of Hyperliquid's standard trading fees. This fee is retained entirely by Stratium.

Your experience is identical to trading on Hyperliquid directly: same orderbook depth, same margin system, same order types, same execution speed. The Builder Code is transparent and approved by the trader before the first trade.

### Key Parameters

| Parameter    | Value                                 |
| ------------ | ------------------------------------- |
| Collateral   | USDC                                  |
| Settlement   | Perpetual (no expiry)                 |
| Builder Fee  | 4.5bps gross                          |
| Order Types  | Market, Limit, Stop-Loss, Take-Profit |
| Margin Modes | Cross, Isolated                       |
| Funding      | Per Hyperliquid standard (hourly)     |

### Available Markets

All perpetual markets listed on Hyperliquid are accessible through the Stratium terminal. This includes native Hyperliquid perps, HIP-3 deployer markets, and any future structured product markets deployed by Stratium.

### Mark Price

Mark price follows Hyperliquid's robust price indices model, combining reference price, internal exchange data, and a smoothed EMA to mitigate manipulation risk. Mark price determines margin requirements, liquidation triggers, TP/SL execution, and unrealized PnL.

### Margining & Liquidations

Both cross-margin and isolated-margin modes are available.

**Cross margin.** Your entire USDC balance serves as collateral across all open positions.

**Isolated margin.** Margin is allocated per position. Losses are contained to the margin assigned.

Liquidation mechanics follow Hyperliquid's standard process. When a position's margin ratio falls below the maintenance requirement, the position is subject to liquidation. Liquidation triggers are based on mark price, not last trade price.

For complete margin and liquidation mechanics, see [Hyperliquid documentation](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/margin-and-leverage).


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