Perpetual futures (perps) are derivative contracts similar to traditional futures but without an expiration date, allowing traders to speculate on an asset's price indefinitely. Price alignment with the underlying asset is provided by holding incentives/disincentives (funding rate) and the final profits and losses are realized when traders close their positions. Perps are popular in the crypto space since they provide a seamless, high-leverage trading experience, akin to speculative betting.
