DeFi & Yield

What is a perpetual DEX and how do perpetual swaps work?

A perpetual DEX is a decentralised exchange for perpetual swaps, derivative contracts that track an asset's price with no expiry date. Traders hold long or short positions using leverage, and a periodic funding payment between longs and shorts keeps the contract price aligned with the underlying spot price. For example, if more traders are long, they pay a funding fee to shorts, nudging prices back toward fair value. Leverage magnifies both gains and losses, and positions can be forcibly closed if margin runs low, so these instruments carry substantial risk.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.