A perpetual future is a futures contract that has no expiration date, so a position can be held indefinitely. Because there is no date to force the contract back to the spot price, exchanges use a funding rate instead: a payment exchanged periodically between the traders holding long positions and the traders holding short positions to keep the perpetual's price close to the spot price of the underlying asset.
A dated future has a fixed expiration date and does not use a funding rate. Before that date a trader can close the position or roll it into a later contract. If neither happens, the contract goes to settlement, either through a cash payment or physical delivery of the underlying asset.
The funding rate is calculated using an interest rate component and a premium index that reflects the gap between the futures price and the spot price. When the perpetual's price trades above spot, the funding rate is positive and traders holding long positions pay traders holding short positions; when it trades below spot, the funding rate is negative and short positions pay long positions. Many exchanges calculate and quote this payment on an 8-hour cycle.
A dated future's price converges toward the spot price as expiration approaches, because the contract will be settled at the spot price on that date. A perpetual future has no expiration to force that convergence, so it relies on the funding rate instead. A trader who wants to stay exposed past a dated future's expiration must roll the position: closing the current contract and opening a new one in the next contract month.
Every market on Canborsa is a perpetual future. Canborsa charges 0.07% per side and settles funding every hour across its 86 markets.
A dated future suits a trade tied to a specific date, since the contract settles and the cost is set at entry. A perpetual future suits a trade with no fixed date, since it can be held open indefinitely and the funding rate is its ongoing cost.
A perpetual future is a type of futures contract, but it has no expiration date, so it can be held indefinitely. A dated future has a fixed expiration date and settles on that date instead.
A dated future's price converges to spot because it settles at the spot price on its expiration date. A perpetual future has no expiration to force that convergence, so it relies on the funding rate instead to keep its price close to spot.
Funding rates are calculated periodically. Many exchanges calculate and quote the payment on an 8-hour cycle.
If a trader has not closed or rolled the position before expiration, the contract goes to settlement, either through a cash payment or physical delivery of the underlying asset.
Perpetual markets for stocks, gold, indices and pre-IPO names — settled on-chain, no wallet-to-exchange transfers.
