✍️On-Chain Perpetual Future Contracts

Star Perps facilitates the trading of on-chain perpetual futures contracts, a type of derivatives contract that never expires. Unlike traditional futures contracts, which have a set expiration date, perpetual contracts allow traders to maintain their positions for as long as desired. These contracts are designed to enable traders to exchange risk on the price movements of a given asset over time.

When a trader closes a position, the contract is cash-settled based on the difference between the asset's price at the time of entry and exit. The level of leverage chosen at the outset further influences the settlement amount.

However, because there is no expiry date, traders need to be vigilant about changes in the underlying asset’s price and funding rates, as these factors will impact profitability over time.