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Perpetual futures give you continuous leveraged delta exposure to an underlying asset without ever choosing an expiration date. Because they never expire, you hold your position as long as you want — paying or receiving hourly funding in exchange for that flexibility. On Everstrike, every perpetual futures contract is priced, margined, and cash-settled in evUSD, so no physical delivery of the underlying asset ever takes place.

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Specification

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Funding

Funding is an hourly exchange of money between longs and shorts that keeps the perpetual futures price anchored to the underlying spot price. When the funding rate is positive, longs pay shorts; when it is negative, shorts pay longs. Funding formulas:
Funding is exchanged during the first five seconds of each hour. At that moment, Everstrike snapshots all open positions and debits or credits each trader’s margin balance according to the formulas above. Trading is disabled for the first ten seconds of each hour to allow the funding exchange to settle cleanly.

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Funding Rate Calculation

Step 1 — Calculate the Premium:
  • Mark Price — the current trading price of the perpetual future.
  • Index Price — the spot reference price of the underlying asset.
  • Premium — the relative difference between the two.
Step 2 — Calculate the Base Funding Rate:
For perpetual futures, dampener = 0.03 (3%). Step 3 — Calculate the Funding Rate:
The hourly funding rate is capped at 0.3%.

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Settlement

Perpetual futures are cash-settled. When you close a position, Everstrike immediately realizes your P/L and credits the amount to your cash balance — usually within one second of closing. No physical delivery of the underlying asset ever takes place.

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Examples

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Example 1 — Profitable Long with Funding Paid

A trader opens a long BTC perpetual futures position when the contract trades at $23,000. One month later, the contract trades at 24,000∗∗.Thetraderhaspaidatotalof∗∗24,000**. The trader has paid a total of **100 in funding over that period.
This amount is credited to the trader’s cash balance on close.

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Example 2 — Profitable Long Despite Price Drop

A trader opens a long BTC perpetual futures position when the contract trades at $23,000. One month later, the contract trades at 22,800∗∗.Overthatperiod,negativefundinghaspaidthetraderatotalof∗∗22,800**. Over that period, negative funding has paid the trader a total of **500.
This amount is credited to the trader’s cash balance on close.
Equivalence with perpetual options: A perpetual futures contract is functionally equivalent to a perpetual call option with a strike price of zero. Both instruments share the same payoff function, and funding works identically across the two product types. See Perpetual Options for details.