How papertax records them
Each YES or NO side is recorded like a token. What you pay is its cost, and selling it or holding it to settlement is a disposal in USDH. Outcome markets appear as their own venue, separate from perps and spot, so you can review them on their own.
Why they're flagged
Depending on your country and circumstances, an outcome position could be treated as gambling, as a derivative, or as an ordinary asset with a capital gain or loss. The answer changes whether wins are taxed and whether losses count, so papertax flags them for review rather than picking one.
Fees and settlement
Outcome markets charge no fee to open and charge fees when you close or at settlement. Settlement credits USDH automatically. If Hyperliquid records a settlement in a form papertax doesn't recognise, it appears in your ledger as an item to review rather than being left out.
Questions
Are Hyperliquid outcome markets taxable?
Most likely, but there is no specific guidance yet. papertax records each side like a token, with sales and settlements as disposals, and flags them for review.
Does papertax read HIP-4 positions?
Yes. Outcome market trades are read from your wallet address and shown as their own venue, with settlement in USDH.