An Introduction to Perpetual Futures

Overview of cryptocurrency perpetual futures (PERPs), derivative contracts without expiration that use funding rates to track spot prices and are widely traded with leverage on major exchanges. The article explains benefits (continuous trading, long/short flexibility, liquidity) and risks (liquidations, funding costs, counterparty and manipulation concerns), their role in price discovery and hedging, and the complex U.S. regulatory landscape under CFTC oversight with KYC/AML requirements. It emphasizes the importance of compliance and highlights Chainalysis KYT and investigation tools to support compliant trading.