Glossary / Glossary term
Perpetual futures
Perpetual futures are crypto derivatives with no expiry that track a coin's price through funding payments, traded long or short on margin.
A perpetual futures contract, or perp, tracks the price of a coin without ever expiring. You can buy it to profit from a rise or sell it to profit from a fall, and you put up margin instead of the full value. A periodic funding payment between longs and shorts keeps its price close to the spot market.
Perpetuals here
The challenges are traded on BTC, ETH and SOL perpetuals, quoted in USDT, in one-way mode: an order in the other direction reduces, closes or flips your position. Leverage is capped at 5x on BTC and ETH and 3x on SOL.
Prices are live: fills use the Bybit order book, and equity uses the composite mark price of Bybit and Hyperliquid. The positions themselves are simulated, and no order reaches an exchange.
Related
- Funding rateThe funding rate is a periodic payment between longs and shorts on perpetual futures that keeps the contract close to the spot price.
- LeverageLeverage is the position value divided by the margin it uses; a cap limits how large a position can be for the equity in the account.
- Perpetual futures in a prop challenge: leverage, funding and liquidationHow perpetual futures work in a simulated prop account: mark price, margin and leverage caps, funding, fees, and why a breach comes before liquidation.