This page consolidates Predikt's positioning and disclosures under EU Regulation 2023/1114 (Markets in Crypto-Assets, “MiCA”) and adjacent EU rules.
Classification — the “double negative”
Predikt's analysis is that Hyperliquid HIP-4 binary outcome contracts are:
- Not crypto-assets within the meaning of MiCA Art. 3(1)(5) because the underlying right is a conditional cash payment in USDC referencing an external event, not a unit of account or store of value.
- Not financial instruments within Annex I MiFID II because they reference outcomes rather than commodities, securities, or rates, and are settled by a permissionless validator set rather than a regulated venue.
This “double negative” classification is open to interpretation and will be confirmed by external legal counsel before mainnet launch. The result is that Predikt's operations fall outside the scope of authorisation as a CASP under MiCA, provided we maintain the five pillars below.
The five pillars keeping Predikt outside CASP scope
- No custody. Funds and private keys remain with the user. Embedded wallets (via Privy) are owned by the end-user; agent wallets are revocable and scoped to trade-only authorisations.
- User-signed orders.Every order is signed via EIP-712 by the user's wallet (or by an agent the user explicitly authorised). We transmit signed transactions to Hyperliquid; we do not originate them.
- No order matching.All matching happens on Hyperliquid's L1 order book by its validator set. Predikt has no order book, no internal counterparty.
- No margin or leverage offered. HIP-4 outcomes are collateralised 1:1 with USDC. We never extend credit, never offer leverage on outcome contracts.
- No advice. AI fair-value scoring and risk coach output are labelled informational and accompanied by a disclaimer. We do not offer personalised investment recommendations.
Hyperliquid as a non-EU venue
Hyperliquid is a permissionless decentralised protocol. It is not registered as a CASP in any EU member state. Predikt users interact directly with the protocol via signed transactions. The settlement and counterparty risks of Hyperliquid lie with Hyperliquid's validator set and code; not with Predikt.
Fee transparency (Art. 66 MiCA)
Predikt earns a builder fee of 0.05%on each trade routed through the platform. This fee is hardcoded in the on-chain order submission and visible to anyone via Hyperliquid's public referral state. Live builder-fee revenue is published on our Transparency dashboard (forthcoming).
The total cost to you per trade is: builder fee + Hyperliquid protocol fee + network/gas costs. All three are disclosed pre-trade.
Marketing rules (Art. 67 MiCA)
Predikt commits to never publish:
- Claims of guaranteed returns or risk-free trades.
- Endorsements that misrepresent the nature of the service.
- Targeted advertising in jurisdictions where Predikt is geo-blocked.
- Marketing aimed at minors.
Influencer partnerships are disclosed (sponsored content is labelled).
Conflicts of interest
Predikt's revenue derives from per-trade builder fees, not from the outcome of any individual market. We do not take positions on markets we list. The CEO holds positions on Hyperliquid in a personal capacity (HLP depositor since Q2 2025); this is disclosed and his trades on Predikt-listed markets are flagged accordingly.
Complaints (Art. 68 / Art. 75 MiCA)
See Complaints procedure. We aim to acknowledge receipt within 48 hours and provide a substantive response within 14 days.
Cooperation with regulators
Predikt will cooperate with reasonable requests from EU and member-state regulators (AMF, ANJ, BaFin, DGOJ, etc.). We maintain hash-chained audit logs of all platform actions (RTO routing, geo-block decisions, approve-builder-fee signatures) for at least 5 years.
Draft note (2026-05-27): This page is under review by external counsel (engagement scheduled). Citations to specific MiCA articles are based on our interpretation and subject to confirmation. We will republish this page with counsel-validated content before mainnet launch.