Crypto Leverage and Perpetual Futures: Mechanics, Funding, and Risk
A risk-first explanation of perpetual futures, margin, funding, liquidation, and the questions to answer before using leverage.
CL
CryptoLVEditorial team
·4 min read
Review and sources
Reviewed 2026-08-13 by CryptoLV Editorial. Next review: 2026-11-13.
- CFTC: Policy Statement Concerning the Listing of Perpetual Contracts opens in a new tab
Supports: Perpetual contracts have no fixed expiry and use periodic funding to seek price parity with spot.
- SEC Investor.gov: Leveraged Investing Strategies opens in a new tab
Supports: Leverage can amplify losses, trigger margin calls, and lead to forced sales.
- CFTC: Understand the Risks of Virtual Currency Trading opens in a new tab
Supports: Virtual-currency markets involve substantial risk and require independent due diligence.
- CFTC: Customer Advisory on Virtual Currencies opens in a new tab
Supports: Customers should understand the platform, terms, costs, and counterparty risk before trading virtual-currency products.
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