# HyperScore Scoring Mechanism

#### Overview

HyperScore is our proprietary **7-factor algorithm** that provides a **360-degree evaluation of trader performance** over the last 90 days. Unlike simple P\&L rankings, HyperScore considers consistency, risk management, and trading efficiency.

#### Scoring Eligibility

Not every trader receives a HyperScore. To ensure data quality and meaningful analysis, traders must meet both criteria:

* **$100K+ Volume** over the last 90 days (trailing) – Sufficient trading activity for statistical significance 
* **$100+ Account Value** – Minimum capital threshold for meaningful analysis

While Hyperliquid has 500K+ traders, only \~50K typically meet these criteria and receive scores. The rest are considered to have insufficient data with poor signal-to-noise ratio for reliable performance evaluation.

#### Scoring Factors

1. **Realized P\&L** – Actual cash taken vs paper gains
2. **Unrealized P\&L** – Paper profit before closing position
3. **Active Trading Days** – Consistency (eliminates lucky streaks)
4. **Profit Factor** – Realized profits vs. realized losses
5. **Efficiency** – Realized P\&L / Volume processed
6. **Sharpe Ratio** – Risk-adjusted return over volatility *(New)* 
7. **Max Drawdown** – Largest portfolio drop from peak *(New)*

#### Score Interpretation

* **9+ Score** = Approx Top 0.1% of all traders (\~50 traders)
* **8+ Score** = Approx Top 2% of all traders (\~1000 traders)
* **7+ Score** = Approx Top 6% of all traders (\~3000 traders)
* **Higher scores** = Better overall trader performance

*The recent addition of Sharpe ratio and Maximum Drawdown provides better insight into trading consistency and risk management capabilities.*