Perpetual futures
Plain definition. A perpetual futures contract is a derivative with no fixed expiration date that uses a periodic funding rate designed to keep its price in line with the underlying asset’s spot price.
Technical definition. Payward, the company that provides the infrastructure layer behind Kraken, wrote in a comment letter filed with the SEC that perpetual contracts are derivative contracts with no fixed expiration date that rely on a periodic funding rate mechanism designed to maintain relative price parity with the underlying asset’s spot price. Apart from having no expiry, the letter says, they work like futures contracts: they are standardized agreements that reference an underlying asset’s price, they require margin, they settle periodically through a funding rate that is economically analogous to the daily settlement of futures, and they carry the same directional risk. The CFTC treated such a contract as a future in its May 29, 2026 order, which allowed KalshiEX, a registered exchange, to list a perpetual contract on the spot price of bitcoin.
On this site
On this site, Perpetual futures comes up in Can XRP be hedged on regulated markets, and why does that matter?, Can XRP be used as margin for futures, options and perpetuals, and where? and How do leveraged XRP derivatives, funding rates and liquidations move XRP’s price?.
Source
Via Electronic Submission (sec.gov), read October 1, 2026.