DEX Perpetuals: Contract Mechanics, Liquidation, and Venue Risk
A venue-neutral guide to perpetual derivatives: index and funding rules, margin and liquidation paths, order execution, custody boundaries, and the checks to make before collateral leaves your wallet.
CL
CryptoLV EditorialEditorial team
·5 min read
Review and sources
Reviewed 2026-08-17 by CryptoLV Editorial. Next review: 2026-11-17.
- CFTC: virtual currency trading risks opens in a new tab
Supports: Virtual-currency futures and leveraged accounts can amplify losses; users should understand settlement indexes, platform risks, and how a product can lose money.
- Investor.gov: leveraged investing strategies opens in a new tab
Supports: Leverage magnifies outcomes and can create losses beyond the amount initially invested in some arrangements; agreements and mechanics must be understood before use.
- FINRA: stop orders in volatile markets opens in a new tab
Supports: A stop order can execute materially away from the trigger price in fast markets and is not a guaranteed exit price.
- CFTC: perpetual-contract policy statement opens in a new tab
Supports: Perpetual contracts have characteristics that require contract-specific review; treatment and available products vary by jurisdiction and listing framework.
- CFTC: digital-asset education opens in a new tab
Supports: Digital-asset markets carry fraud, platform, custody, and market-integrity risks in addition to product mechanics.
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