# Trading Overview & Mechanics

### How Stratium Markets Work

Stratium deploys structured-finance perpetual markets on Hyperliquid's HyperCore infrastructure through HIP-3/ HIP-4. These markets run on the same matching engine, orderbook, and margin system as native Hyperliquid perps.

Hyperliquid handles execution, settlement, and liquidations. Stratium defines the market parameters, oracle configuration, and instrument design.

### Key Parameters

| Parameter    | Value                                 |
| ------------ | ------------------------------------- |
| Collateral   | USDH                                  |
| Settlement   | Perpetual (no expiry)                 |
| Funding      | Per Hyperliquid standard (hourly)     |
| Order Types  | Market, Limit, Stop-Loss, Take-Profit |
| Margin Modes | Cross, Isolated (per Hyperliquid)     |

Leverage limits are configured per market based on the underlying's volatility profile and oracle characteristics. Structured product underlyings have different risk parameters than standard token perps.

### Funding Rates on Structured Products

Funding rates on Stratium markets follow Hyperliquid's standard mechanism: periodic payments exchanged between longs and shorts to keep the perpetual price anchored to the underlying index.

For structured products, the underlying is not a spot price. The funding mechanism still functions identically: when the perp trades above the oracle-reported index value, longs pay shorts. When it trades below, shorts pay longs.

### Mark Price

Mark price on Stratium markets follows Hyperliquid's robust price indices model, combining oracle 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.


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