Perpetuals (aka perpetual swap contracts) are financial derivatives, similar to futures, that enable traders/investors/speculators/hedgers to easily long and short cryptocurrencies with leverage. They are named perpetuals because they never expire and they are classified as swaps because payments are “swapped” between counterparties on a periodic basis. Perpetuals represent the price of a perpetual claim on an index (e.g. the BLADE ZEC/USDT index).
Trading perpetuals is analogous to trading the underlying asset/cryptocurrency, but with leverage and a simple and efficient mechanism to short. In addition, trading perpetuals has two important advantages over trading expiring futures:
- Since perpetuals never expire, traders never need to roll over their futures contracts from the front month to a further-out month
- Perpetuals typically trade closer to spot because of periodic payments which close the gap (or basis) between perpetuals prices and underlying index prices
As shown in the following table, BLADE lists both vanilla perpetuals and inverse perpetuals. Vanilla perpetuals are simpler contracts in which P&L is denominated in the quote currency. Inverse perpetuals are more complex contracts in which P&L is denominated in the underlying currency.
|Contract||Type||Leverage||P&L/Margin||Contract Size||Tick Size||Maker Rebates||Taker Fees|
|BTC/USD||Inverse||150X||BTC||1 USD||0.25 USD||-0.025%||0.075%|
|BTC/KRW||Inverse||150X||BTC||1000 KRW||100 KRW||-0.025%||0.075%|
|ETH/USDT||Vanilla||50X||USDT||0.01 ETH||0.05 USDT||-0.025%||0.075%|
|XRP/USDT||Vanilla||50X||USDT||1 XRP||0.0001 USDT||-0.025%||0.075%|
|ZEC/USDT||Vanilla||50X||USDT||0.01 ZEC||0.01 USDT||-0.025%||0.075%|
|XMR/BTC||Vanilla||50X||BTC||0.01 XMR||0.000001 BTC||-0.025%||0.075%|