Perpetuals and funding
How perpetual futures, funding rates, premiums and basis work.
- What Is a Funding Rate in Crypto? Perpetual Futures ExplainedA funding rate is a periodic payment between longs and shorts that keeps perpetual futures close to spot. Learn how it is calculated, paid and read.
- What Are Perpetual Futures? How Crypto Perps Work ExplainedPerpetual futures are crypto derivatives with no expiry date that track spot through funding payments. Learn how perps work, how PnL and funding are calculated.
- What Is Basis in Crypto? Futures and Perp Basis ExplainedBasis is the gap between a crypto futures price and the spot price. Learn how to calculate and annualize basis, contango vs backwardation and the perp premium.
- Mark Price vs Index Price vs Last Price in Crypto FuturesMark price, index price and last price are the three prices on a perpetual futures contract. Learn what each measures and why liquidations use the mark price.
- Futures vs Perpetual Futures: What Is the Difference in Crypto?Dated futures expire on a set date and converge to spot at settlement. Perpetual futures never expire and use funding payments to track spot. Compare both here.
- What Are Contango and Backwardation? Crypto Futures CurvesContango is when futures trade above spot; backwardation is when they trade below it. Learn what causes each in crypto and how to read the futures curve.
- Linear vs Inverse Contracts: USDT-Margined vs Coin-MarginedLinear contracts are margined and settled in stablecoins like USDT; inverse contracts use the coin itself. Compare PnL formulas, risks and uses.
- What Is the Premium Index? How Perp Premiums Drive FundingThe premium index measures how far a perpetual futures price trades above or below its spot index. Learn how it is calculated and how it feeds the funding rate.
- How Are Funding Rates Calculated? The Perp Funding FormulaMost exchanges calculate funding as premium index plus a clamped interest rate, then apply caps. Learn the formula, the 0.01% baseline and why intervals differ.
- What Is a Basis Trade? Spot vs Futures Basis in CryptoA basis trade buys spot and sells futures, or the reverse, to capture the gap as it converges. Learn how to calculate and annualize basis, with examples.