What is the difference between a perp and a dated future?
A dated future expires on a set day and converges to spot or index at settlement. A perpetual future has no expiry; funding payments keep it anchored to spot instead. Both offer leveraged delta exposure, but perps bill carry continuously while dated futures embed it in the basis until roll or expiry.
How do crypto options differ from perps?
Options give the right, not the obligation, to buy or sell at a strike before expiry — with premium paid upfront and defined nonlinear payoff. Perps are linear delta exposure with funding and liquidation. Options cost theta; perps cost funding and maintenance risk.
Are prediction markets a type of derivative?
Yes — event contracts are derivatives with payoffs tied to outcomes, not continuous prices. They trade on regulated exchanges alongside or separate from perps. They are not "spot with leverage"; payoff is bounded by contract design at resolution.
Crypto exposure comes in layers: spot, then leveraged linear instruments, then nonlinear options, then event payoffs. This page is a map — not a ranking of what to trade.
settle on a calendar date. Basis reflects interest and dividends (in equity index land) or carry (in crypto). You roll or exit before expiry.
Strengths: Known expiry for treasury and accounting; basis trade vs spot. Costs: Roll operational risk; liquidity cliffs near expiry.
Crypto dated markets are thinner than perps on many assets — check book depth before sizing.
◇ OPTIONS
Options add convexity: limited premium at risk for buyers; margin and tail risk for sellers. Greeks (delta, gamma, vega, theta) drive P&L — not funding alone.
Strengths: Defined premium for buyers; vol trading; structured hedges. Costs: Theta decay; liquidity on strikes; complexity.
Perps are the "linear center" of the book; options are how you pay for curvature.
◇ PREDICTION MARKETS
Event contracts on approved exchanges pay on resolution — CPI print, policy path, elections. Overlap with perps is regulatory and mechanical, not payoff (prediction markets vs perps).
Strengths: Express discrete macro views with bounded risk per contract. Costs: Illiquidity on niche events; resolution rule risk.