Perp
Last updated 17 October 2026Last verified 17 October 2026
What is a perpetual future (perp) in crypto?
Perpetual future. A derivative with no expiry; funding payments between longs and shorts keep its price tethered to the spot reference. The dominant trading instrument on DeFi derivatives platforms. Funding rates can become significantly negative during sustained bear markets, creating a carry cost that erodes leveraged long positions.
TradFi equivalentA future that never expires, rolled continuously by funding payments instead of quarterly. It removes expiry management and replaces it with a carry cost that resets every few hours.