What is the Context of Perpetual Derivatives?

Perpetual Derivatives are a prominent feature in crypto news, often associated with high trading volumes and significant market liquidity on digital asset exchanges. Their situation involves enabling sophisticated trading strategies, including leverage and short selling, which can amplify market movements. Discussions often concern the risks associated with these instruments due to their continuous nature and potential for rapid price changes. Regulatory bodies are increasingly scrutinizing their use and oversight.

Perpetual Derivatives

Definition

Perpetual Derivatives are a type of futures contract in the digital asset market that does not have an expiry date. Unlike traditional futures, these contracts can be held indefinitely, allowing traders to speculate on the future price of an underlying cryptocurrency without the obligation to settle by a specific date. They employ a funding rate mechanism to keep the contract price closely aligned with the spot price of the asset. This financial instrument offers continuous exposure.

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∞On-Chain Copy Trading

∞Product-Market Fit

∞Transparent Trading

Based Integrates Copy Trading and Streamer Revenue on Hyperliquid Derivatives Platform

This feature leverages Hyperliquid's throughput to on-chain social trading, creating a powerful, verifiable incentive flywheel for content creators and liquidity.

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∞DeFAI Protocols

∞Decentralized Artificial Intelligence

∞Perpetual Derivatives

AI Models Achieve 130% Capital Growth on Hyperliquid Decentralized Exchange

Agentic AI models demonstrated superior capital efficiency on-chain, positioning machine intelligence as a new composable primitive for high-frequency decentralized finance.

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∞Decentralized Exchange

∞Trading Volume

∞Perpetual Derivatives