> For the complete documentation index, see [llms.txt](https://docs.sudo.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sudo.finance/trade-on-sudo/educational-resources/what-are-perpetual-futures.md).

# What Are Perpetual Futures?

**Perpetual futures contracts** (or perps) are crypto derivatives that allow traders to speculate on the price of an asset without owning it. Unlike traditional futures, they don’t have an expiration date and instead use a **funding rate** mechanism to tether their price to the spot market.

**Key Features:**

• Trade long or short with leverage

• No expiry — hold positions indefinitely

• Settle in SUI/USDC 

• Funding fees paid between traders to balance long/short positioning

### 🚀 Spot vs. Perpetual Futures at a Glance

|                   | Spot Trading                   | Perpetual Futures                                      |
| ----------------- | ------------------------------ | ------------------------------------------------------ |
| Ownership         | Direct asset ownership         | No ownership — you're trading a contract               |
| Settlement        | Immediate                      | No expiry; settled through margin/funding              |
| Leverage          | None (unless using margin)     | High leverage available (up to 100x on some platforms) |
| Volatility Impact | 1:1 with price                 | Gains/losses amplified via leverage                    |
| Liquidation Risk  | None                           | High (if margin < maintenance level)                   |
| Market Risk       | Exchange halts can isolate you | Index pricing avoids manipulation                      |


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.sudo.finance/trade-on-sudo/educational-resources/what-are-perpetual-futures.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.