Perpetuals Intro

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. Perpetuals represent the price of a perpetual claim on an index (e.g. the BLADE BTC/USDT index).

Trading perpetuals is analogous to trading the underlying asset/cryptocurrency, but with leverage and a simple and efficient mechanism to short. An additonal advantage is that, since perpetuals never expire, traders never need to roll over their futures contracts from the front month to a further-out month.

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.

ContractTypeLeverageP&L/MarginContract SizeTick Size
BTC/USDInverse150XBTC1 USD0.25 USD
BTC/USDTVanilla150XUSDT0.0001 BTC0.25 USDT