# Background & Problems ## Industry pain points * 🚫 Exchange restrictions: HyperLiquid's high leverage restrictions on perpetual contract transactions cannot meet users' needs for short-term high-risk and high-return. * 🚫 User needs: Traders are eager to use high leverage (50-200 times) to capture opportunities brought by short-term market fluctuations. * 🚫 Capital threshold: High-value positions require huge margins, while retail investors have limited funds and find it difficult to participate. ## Market size * 📈 Trading volume: HyperLiquid accounts for 80% of the global decentralized cryptocurrency derivatives daily trading volume (≈ 10 b/day). * 💡 Target users: High-frequency traders, institutional arbitrageurs, and leveraged speculators are the main target groups. ## HyperLiquid L1 HyperLiquid L1 shows breakthrough potential with its layered architecture * HyperCore layer: 10,000 TPS and CEX-level trading depth, providing a zero-slippage execution environment for high-leverage strategies, while supporting spot and contract trading; * HyperEVM layer: fully compatible with EVM's smart contract capabilities, supporting complex financial logic on-chain. * Future: HyperLiquid will further improve the interoperability between Core and EVM, providing a wider range of imagination. * HIPs-1&2: Support any token in the EVM layer to be directly transferred to the Core to form a trading pair, further expanding the boundaries of HL --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://leveracc.gitbook.io/leveracc-docs/getting-started/background-and-problems.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.