Crypto Facilities, a UK-regulated cryptocurrency trading platform, has announced the launch of innovative perpetual futures contracts for major cryptocurrencies including BTC, ETH, LTC, BCH, and XRP.
Understanding Futures Contracts
Futures contracts represent binding agreements where:
- Buyers agree to purchase an asset at a predetermined future date/price
- Sellers agree to deliver that asset under the same terms
Key characteristics:
- Long positions = Buying contracts (betting on price increases)
- Short positions = Selling contracts (betting on price decreases)
- Settlement occurs on predetermined expiration dates for traditional futures
What Makes Perpetual Contracts Unique?
These revolutionary instruments offer:
- No expiration dates - Positions can remain open indefinitely without forced settlement
- Continuous pricing mechanism - 4-hour funding intervals tether contracts to spot market values
- High leverage options - Up to 100x leverage available
- Multi-directional trading - Both long and short positions supported
👉 Discover how perpetual contracts differ from traditional futures
Settlement Process
- Occurs every 4 hours on Crypto Facilities' platform
- Uses funding rates to maintain price parity with spot markets
- Cash-settled (no physical delivery of underlying assets)
Available Contract Pairs
| Contract Pair | Type |
|---|---|
| BTC/USD | Inverse perpetual |
| ETH/USD | Inverse perpetual |
| LTC/USD | Inverse perpetual |
| BCH/USD | Inverse perpetual |
| XRP/USD | Inverse perpetual |
| XRP/BTC | Standard perpetual |
Market Context
Crypto Facilities has been pioneering crypto derivatives since 2017, previously launching:
- Bitcoin Cash futures (August 2018)
- Ethereum futures (May 2018)
- Bitcoin/Litecoin futures (2017)
CEO Timo Schlaefer notes: "Bitcoin futures underwent significant maturation in 2017-2018. We're seeing Ethereum follow a similar trajectory now."
👉 Explore the evolution of crypto derivatives markets
Traditional Finance Meets Crypto
This development follows major milestones:
- CBOE bitcoin futures (December 2017)
- CME bitcoin futures (December 2017)
- Growing institutional interest despite ETF rejections
FAQ Section
Q: What's the main advantage of perpetual contracts?
A: They eliminate expiration dates, allowing indefinite position maintenance.
Q: How often do funding payments occur?
A: Every 4 hours to maintain price alignment with spot markets.
Q: Are these contracts available to US traders?
A: Currently only offered through UK-regulated Crypto Facilities platform.
Q: What leverage levels are available?
A: Up to 100x leverage depending on the contract pair.
Q: How are perpetual contracts settled?
A: Cash-settled in USD (except XRP/BTC settled in XRP).
Q: Can I hedge with these contracts?
A: Yes, they're suitable for hedging strategies like traditional futures.
Risk Considerations
- High leverage magnifies both gains and losses
- Requires active position management
- Crypto markets remain volatile
- Regulatory environments vary by jurisdiction
Note: This content represents market commentary only, not investment advice. Cryptocurrency trading involves substantial risk.