A perpetual future, often called a perp, is a derivatives contract that lets traders gain exposure to an asset's price movements without owning the asset and without a settlement date. Unlike traditional futures, which expire, a perpetual can be held indefinitely.
Because there is no expiry to force convergence with spot, perpetuals rely on a funding-rate mechanism: periodic payments between longs and shorts that nudge the contract price toward the underlying spot price.
Perpetuals are usually traded with leverage and are a dominant venue for crypto derivatives activity. Their open interest, funding rates, and liquidation data are heavily watched because they reflect how leveraged participants are positioned. The contract is a tool for price exposure, and its mechanics carry distinct risks compared with holding the underlying asset.