A perpetual future on a real-world asset is a derivative contract that tracks the price of an asset such as a stock, a commodity, or a currency. It has no expiry date, and the trader never holds the asset itself. The venue uses a price feed for the underlying asset and a funding rate that pulls the contract's price toward that reference. Because the trader holds only a contract that tracks the price, a venue can list a market on an asset that does not exist onchain.
Last updated: November 2, 2026.
What is a perpetual future?
A traditional futures contract has a set expiry date, when any position still open is settled. A perpetual future has none. A position has no scheduled closing date, but it needs enough margin, which is the collateral that backs it, to stay open.
Perpetuals can be traded with leverage, so a small amount of margin controls a larger position. If losses reduce the margin below the venue's maintenance requirement, the venue can close the position, which is called liquidation. Because there is no expiry to force the contract price back to the asset's price, perpetuals need another mechanism to do that.
How does the funding rate keep the price close?
The funding rate is a periodic payment between traders on opposite sides. The direction of funding follows the gap between the contract price and the reference price. When the contract trades above the reference, traders holding long positions pay those holding short positions. When it trades far enough below, shorts pay longs. The payment makes it costly to hold the side that is pushing the price away from the reference, which pulls the two prices back together.
The venue sets how funding is calculated and how often it is paid. Funding is exchanged between traders and does not depend on anyone owning the underlying asset.
Where does the reference price come from?
For a real-world asset, the reference price comes from outside the chain. Oracles or index providers report prices from the markets where the asset trades, and the venue uses that data for funding, margin, and liquidations.
Many traditional markets close overnight, on weekends, and on holidays, while a perpetual market can trade at any hour. Each venue sets rules for those hours, for example how the reference price is held or updated and how margin requirements change until the underlying market reopens. These rules are part of the market's design and vary by venue.
How does this differ from a tokenized asset?
| Question | Tokenized stock | Perpetual on a stock |
|---|---|---|
| What is held | A token that represents the asset or a claim | A contract position backed by margin |
| Is the asset held? | Depends on the token: some are the share itself or are backed by shares in custody, synthetic ones only track the price | No, the exposure is synthetic |
| Expiry | None | None, but funding is paid or received |
| Leverage | Not built in | Set by the venue's margin rules |
| Ongoing cost of holding | Set by the issuer's terms | Funding payments, which change over time |
The guide to tokenized and synthetic assets explains the difference in more depth.
FAQ
Does a perpetual on a stock make me a shareholder?
No. The contract tracks the price only. It carries no ownership, voting rights, or claim on the company.
Why is it called perpetual?
Because it has no expiry date. A position has no scheduled closing date, but it needs enough margin to stay open.
Can a tokenized asset be used as margin for a perpetual?
It depends on the venue. A venue decides which assets it accepts as collateral and how much margin credit each one receives.
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