Perpetual Swap Contract

A perpetual swap contract, or 'perp', is a type of derivative contract. Unlike typical futures, perpetual swaps have no expiry.

Perps are priced by an anchoring system called the funding rate mechanism, which balances short/long positions via trade incentives. An oscillating price indicator assesses whether long or short traders must pay fees and/or receive rebates. This helps the contract achieve a close correlation with the underlying asset's spot price, as well as calculate leveraged positions.