What is the Perpetual DEXs ?

• Perpetual Futures Trading is a derivative product of digital assets, functioning as an agreement to buy or sell a commodity, currency, or another instrument at a predetermined price at a specified time in the future. However, this buying and selling contract has no expiration date, allowing traders to hold positions for as long as they desire.

• In contrast to Bitcoin, where one can trade anywhere, the perp that individuals trade daily is only created by a specific exchange and can only be traded there. The deployment of Perp can also vary significantly between different exchanges.

• The value of the perp at any given time is represented by its mark price. This is the price used to calculate profits and trigger liquidation. It is often based on the trading price of the perp on the exchange.

• The basic idea of a perp is to ignore complex factors such as inflation, making its value equivalent to the asset it represents (e.g., bitcoin). This asset's value is expressed in the system through the index price, typically calculated from its trading prices on various exchanges.

• When the index price and mark price are equal, the perp is valued the same as the asset it represents.

• When the index price and mark price differ, the system will transfer funding fees between long and short perp holders. For example, the funding fee paid by long holders to short holders is $(mark price - index price) per contract per day. When this figure is negative, short holders pay long holders.

• Traders need to maintain margin when trading. If the mark price changes compared to the entry when traders enter an order, the profit/loss will be factored into their margin. If the balance in this margin section falls too low, indicating the trader's position will automatically be closed.