a perpetual future is a crypto derivative that lets you take a leveraged long or short position on an asset with no expiry date. you put up collateral, borrow against it, and ride the price. unlike a traditional dated future, the contract never settles, so you can hold it for one minute or one year. funding payments keep its price tethered to the spot index.
in plain english
think of a perp as a price bet that never ends. you say "i think eth goes up" and you size your bet bigger than your wallet using leverage. if you are right, your collateral grows. if you are wrong, it shrinks. when your loss eats your collateral, you get liquidated and the position closes. funding is a tiny periodic fee that the side everyone is leaning on pays to the other side, which keeps the perp price honest.
why perpetuals exist
traditional futures expire monthly or quarterly, which forces traders to roll positions and creates friction. perpetuals solve that by never expiring, but a non-expiring contract needs a mechanism to stay anchored to spot. that mechanism is the funding rate, and it is the defining innovation that makes perps work.
- no expiry, no rollover, hold as long as collateral lasts.
- leverage typically 1x to 500x depending on venue.
- funding payments every 1 to 8 hours keep mark price near index.
- liquidation closes the position when margin is exhausted.
how it shows up on uponly.win
every position on uponly is a perpetual future. when you tap the rip button, you are opening a randomized leveraged perp on avantis on base. you do not pick the pair or the direction. the platform rolls dice, your collateral is locked, and the trade runs until you close or get liquidated. learn more in how uponly was built in one night.
common confusions
perpetuals are not options. an option gives you the right but not the obligation to buy or sell at a strike. a perp is a direct linear exposure with no strike and no premium. perpetuals are also not the same as spot margin: spot margin involves actually borrowing the underlying asset, while perps are synthetic contracts.
- perp vs spot: perp uses leverage and has no asset ownership.
- perp vs dated future: perp never expires.
- perp vs option: perp is linear, options have asymmetric payoff.
- perp vs swap: a perpetual swap is just another name for a perpetual future.
see also
related glossary terms that pair with this one:
- funding rate definition
- leverage definition
- liquidation price definition
- mark price vs index price
- long vs short position
if you want to feel a perpetual future in action without reading any more theory, open uponly and rip one. the trade is real, the collateral is yours, and the mechanics above are exactly what happens under the hood.