General Intro about Perpetual Futures
What are Perpetual Futures?
Perpetual futures are futures contracts with no expiration date. The “perpetual” status is maintained by paying/receiving the funding fee.
The Deri Protocol lists Perpetual Futures on many coins including BTC, ETH, BNB, etc.
Why trade Perpetual Futures?
- Hedging and risk management: traders can use perpetual futures to hedge positions
- Leverage: Perpetual Futures do not require traders to post 100% of collateral as margin. Therefore, trading perpetual futures is more capital efficient.
- No need to own the underlying asset: the payoff of the perpetual futures is based on the underlying asset, such as BTC, but traders do not need to own the underlying asset itself. Any profits and losses will be settled directly in settlement tokens.
- Ability to trade both directions: traders can buy (long) or sell (short) perpetual futures, so they can profit from both rising and falling prices. This is not possible with spot trading.
Advantages of Perpetual Futures on Deri Protocol
The “External Custody” feature allows traders on Deri Protocol to use other tokens than stable coins as collateral. Refer to table 1 for base tokens that can be used to trade Perpetual Futures on Deri Protocol.
The Basic terms on Deri Protocol
When trading Perpetual Futures, you will see a lot of terminology that is being used. We explain the most common terms here.
Liquidation on Deri Protocol
You can find detailed illustrations about Liquidation on Deri Protocol here.
How to trade them on Deri Protocol?
You can find a detailed guide on Deri Protocol here.
About Deri Protocol
Deri, your option, your future!
Deri is the DeFi way to trade derivatives: to hedge, to speculate, to arbitrage, all on chain. With Deri Protocol, trades are executed under AMM paradigm and positions are tokenized as NFTs, highly composable with other DeFi projects. Having provided an on-chain mechanism to exchange risk exposures precisely and capital-efficiently, Deri Protocol has minted one of the most important blocks of the DeFi infrastructure.