A perpetual swap is a derivative that provides ongoing long or short exposure without a scheduled expiration date. Crypto venues often use “perpetual swap,” “perpetual contract” and “perpetual futures” for similar products. The name alone does not establish a universal legal classification or contract design.
Exposure without a delivery date
Opening a perpetual swap creates a contractual position linked to a reference asset. It does not necessarily buy that asset or exchange two tokens in a wallet. Position size, collateral and settlement currency depend on the product.
A linear contract typically produces profit and loss proportional to the price change for a fixed underlying quantity. An inverse contract uses a different payoff formula and commonly settles in the underlying coin. Both structures can be perpetual, so the word “swap” does not identify the payoff.
Keeping an open position
Funding commonly transfers amounts between eligible longs and shorts to influence the contract’s relationship with its reference market. It is separate from trade execution fees, and its direction and rate can change.
No scheduled expiry does not mean unlimited holding under all circumstances. Margin requirements still apply, and liquidation, delisting or exceptional termination may end exposure. Repeated funding, collateral price changes and the ability to exit in available liquidity all affect the practical cost of keeping a position open.