What Are Perpetual Futures in Crypto? Complete Explainer

Perpetual futures are the most traded crypto derivative — allowing leveraged long or short positions with no expiry date. This explainer covers how perps work, funding rates, liquidation mechanics, and how to trade them responsibly.

A perpetual future lets you bet on the price of an asset going up or down, with leverage, and with no expiry date. Unlike traditional futures that expire monthly, perps exist indefinitely — ideal for swing trading and short-term hedging.

How Funding Rates Work

The funding rate keeps the perp price close to the spot price. When more traders are long, long positions pay funding to short positions — incentivising short sellers to enter and pushing the price back toward spot.

Liquidation: The Key Risk

If the market moves against you and your margin falls below maintenance margin, your position is automatically liquidated. With 10x leverage, a 10% adverse move triggers liquidation.

Trading Perps on Steyble

Steyble perps run on decentralised smart contracts with full transparency into liquidation parameters. You trade directly from your self-custodial wallet — the exchange never holds your collateral.