What Are Perpetual Futures?
Perpetual futures ("perps") are crypto derivatives that track an asset's price and let you take leveraged long or short positions with no expiry date. Unlike traditional futures, perps never settle on a fixed date — a periodic funding rate keeps their price anchored to the underlying spot market, so you can hold a position as long as your margin supports it.
How perpetual futures work
You post margin (collateral) and open a position sized larger than your margin using leverage. Going long profits if the price rises; going short profits if it falls. Profit and loss update in real time, and if losses erode your margin below the maintenance threshold, the position is liquidated. Because there is no expiry, you manage the position yourself — closing or adjusting it whenever you choose.
Funding rate
The funding rate is a small periodic payment exchanged directly between longs and shorts that keeps the perpetual's price close to spot. When perps trade above spot, longs pay shorts; when below, shorts pay longs. It is not a fee paid to the exchange — it is a mechanism that balances the two sides of the market.
Perps vs traditional futures
Traditional futures expire on a set date and converge to spot at settlement. Perpetual futures never expire, using the funding rate instead of an expiry to track spot. That makes perps simpler for continuous exposure — no contract rollovers — which is why they dominate crypto derivatives volume.
Trade perpetuals self-custody
Rubin lets you trade 900+ crypto perpetual futures self-custody, from your own wallet, on a transparent on-chain order book — with cross-margin, advanced order types, low fees, and an API + MCP server for bots and AI agents. See how a decentralized perpetual exchange works, browse all markets, or start with BTC-USD.
Frequently asked questions
What are perpetual futures?
Perpetual futures (perps) are crypto derivatives that track an asset's price and let you take leveraged long or short positions with no expiry date. A periodic funding rate keeps the perpetual's price anchored to spot, so you can hold a position as long as your margin supports it.
What is a funding rate?
The funding rate is a small periodic payment exchanged between longs and shorts that keeps a perpetual's price close to the spot price. When perps trade above spot, longs pay shorts; when below, shorts pay longs. It is not a fee paid to the exchange.
How are perpetual futures different from regular futures?
Traditional futures expire on a set date; perpetual futures never expire and use a funding rate instead to track spot. This avoids contract rollovers and makes perps simpler for continuous exposure.
What is liquidation?
If losses on a leveraged position erode your margin below the maintenance requirement, the position is automatically closed (liquidated) to prevent further loss. Using lower leverage and stop-losses reduces liquidation risk.
Where can I trade perpetual futures self-custody?
Rubin is a self-custody decentralized exchange offering 900+ crypto perpetual futures markets with cross-margin, advanced order types, low fees, and API/MCP access for algorithmic and AI-agent trading.