Perpetual Future in one sentence: A perpetual future, or perp, is a futures-style crypto contract with no expiry date, usually kept near spot price by funding payments.
A perpetual future is the main instrument most Hyperliquid traders mean when they say “perp.” Instead of buying BTC, ETH, or HYPE directly, you trade a contract whose price tracks the asset. Beginners usually meet perps when they see 2x, 5x, or 10x leverage offered on an exchange and wonder why the position does not settle on a fixed date.
How it works
A perp lets traders go long or short without an expiry, so the contract can stay open until the trader closes it or gets liquidated. To keep the perp price close to the underlying market, exchanges use funding rates: one side of the trade periodically pays the other when the contract trades above or below spot. On Hyperliquid, perps trade through an order book rather than an AMM, so entries and exits depend on bids, asks, liquidity, and order type.
Why it matters
Perps are powerful because they let you trade direction, hedge spot holdings, and use leverage, but they can also turn small price moves into large account swings. A beginner should understand that “buying a perp” is not the same as holding the token in a wallet: you have margin requirements, funding payments, and liquidation risk. Before using a perp, know the asset, position size, leverage, and the price where the trade becomes unsafe.
Use it in a sentence
Example: “I traded the ETH perp on Hyperliquid instead of buying spot ETH because I wanted a short-term leveraged position.”