Let $\mathbb H^n$ be the $n$-dimensional hyperbolic space. Given a sequence $u_0,\ldots,u_m$ of points in $\mathbb H^n$ and $t_0,\ldots,t_m$ nonnegative real numbers whose sum is $1$, let us define the convex combination $t_0u_0+\ldots+t_mu_m$ by induction on $m$:
- Case $m=1$. We define $t_0u_0+t_1u_0$ to be the only point $x$ of the geodesic arc $[u_0,u_1]$ such that $d(x,u_0)=t_1d(u_0,u_1)$
- Suppose such combinations have been defined for all sequences of $m+1$ points of $\mathbb H^n$. Let $u_0,\ldots,u_{m+1}$ be a sequence of points of $\mathbb H^n$ and $t_0,\ldots,t_{m+1}$ be nonnegative reals whose sum is $1$. If $t_{m+1}=1$, we define $0u_0+\ldots+0u_m+1u_{m+1}:=u_{m+1}$. Otherwise $1-t_{m+1}\neq0$, and $$\sum_{i=0}^m\frac{t_i}{1-t_{m+1}}=\sum_{i=0}^m\frac{t_i}{t_0+\cdots+t_m}=1,$$ and hence $\frac{t_0}{1-t_{m+1}}u_0+\cdots+\frac{t_m}{1-t_{m+1}}u_m$ is defined, and we define $t_0u_0+\cdots+t_{m+1}u_{m+1}$ to be the convex combination $$(t_0+\cdots+t_m)\left(\frac{t_0}{1-t_{m+1}}u_0+\cdots+\frac{t_m}{1-t_{m+1}}u_m\right)+t_{m+1}u_{m+1},$$ using the previous case.
I want to know whether this construction depends on the order of the sequence $u_0,\ldots,u_m$.
It is easy to prove that $t_0u_0+t_1u_1=t_1u_1+t_0u_0$. Using this I have proved that if $t_0u_0+t_1u_1+t_2u_2=t_0u_0+t_2u_2+t_1u_1$ holds for all convex combinations of three points, then the convex combinations of a finite sequence of points in $\mathbb H^n$ does not depend on the order of the sequence.
However cannot see why $t_0u_0+t_1u_1+t_2u_2=t_0u_0+t_2u_2+t_1u_1$ holds. It is enough to prove this in $\mathbb H^2$. My first question is: is this true?
I have managed to prove this assignment is differentiable, and an smooth embedding in the interior of $\Delta^m$ if $u_0,\ldots u_m$ are in general position in $\mathbb H^n$; this means they do not belong to a hyperbolic subspace of dimension $\leq m-1$.
My second question is: if the first question is false, is there a way to define convex combinations of points of $\mathbb H^n$ which does not depend on the order, it is preserved under isometries, and when the points are in general position the restriction of this function is an embedding?

The best way to do this is to use the Lorentzian model of the hyperbolic space. Let $L^+\subset R^{n,1}$ denote the future cone of time-like vectors $v$, $\langle v, v\rangle <0$ (I am using the negative of the bilinear form from the wikipedia article). The projection of $L^+$ to $RP^n$ is then the Klein model of the hyperbolic space $H^n$. Any finite subset $p_1,...,p_k\in H^n$ corresponds to a set of vectors $v_1,...,v_k\in L^+$. The affine convex combination of these vectors is $$ {\mathbf v}=\sum_{i=1}^k t_i v_i, $$ where $t_i\ge 0, \sum_i t_i=1$. Lastly, project ${\mathbf v}$ to $p\in H^n$. This is your convex combination of points $p_1,...,p_k\in H^n$. The construction is clearly independent of the ordering of the points.
Claim. If the vectors $v_1,...,v_k$ are linearly independent then the map ${\mathbf t}\mapsto p$ is 1-1.
Proof. Since the vectors $v_1,...,v_k$ are linearly independent, the affine $k$-dimensional subspace $A$ which they determine in $R^{n,1}$ does not contain the origin. Hence, the projection $A\to RP^n$ is 1-1. The map $$ {\mathbf t}\mapsto {\mathbf v} $$ is injective (again, by the linear independence of the vectors) and its image is contained in $A$. Hence, the composition $$ {\mathbf t}\mapsto {\mathbf v} \mapsto p $$ is 1-1. qed
The last thing to note is that linear independence of the vectors $v_1,...,v_k$ is equivalent to the property that the corresponding points $p_1,...,p_k\in H^n$ span a $k$-dimensional hyperbolic subspace in $H^n$ (i.e. are not contained in a hyperbolic subspace of dimension $< k$).