Introduction to perpetual Contracts

Brief introduction

A perpetual contract is a futures contract that does not require delivery but can be held permanently. Users can profit from higher/lower prices for digital assets by judging the ups and downs and choosing to buy long or sell short contracts.

Main points overview

- Expiration date: Each delivery contract has a fixed due date and the delivery price is the arithmetic average of the US dollar index for the last hour of OZ (sCNH , sUSD, and other coins) as the closing price for all current weekly contracts. The perpetual contract has no expiration date and never expires;

- Capital costs: since there is no expiration delivery date, the perpetual contract needs to be anchored through the "fund fee mechanism" to anchor the exchange price from the contract price;

- Mark price: perpetual contract uses the mark price to calculate the user's unrealized profit and loss, it effectively reduces the market fluctuations when unnecessary liquidation;