Get the extension What are perpetual futures (perps)?
Perpetual futures, or perps, are contracts that track the price of an asset without ever expiring. You open a long or short position with margin and optional leverage; a funding rate paid between longs and shorts keeps the contract close to the spot price.
Why it matters
Leverage multiplies gains and losses. If the price moves far enough against you, the position is liquidated and you can lose the whole margin. Perps are for traders who accept that risk, not for savings.
How Locker Protocol Wallet handles it
Locker Protocol Wallet can trade perps on Hyperliquid through an agent key: a time-limited key that may place orders for you but can never withdraw. Deposits and withdrawals are signed on the Vault. The wallet charges 0.05% on Hyperliquid orders once you approve it.
Questions
What is liquidation?
The forced closing of a position when your margin no longer covers the loss. It happens automatically at the liquidation price.
What is a funding rate?
A periodic payment between long and short traders that keeps the perp price near the market price. Depending on its sign, you pay it or receive it while the position is open.