Introduction to Perpetual Options

What are Perpetual Options?

Perpetual Options are a novel new crypto derivative instrument that combines the risk-reward profile of options (protected downside with unlimited upside) with the simplicity of perpetual futures.

Perpetual options are:

Options that never expire

• Unlike traditional options that have a fixed expiration date, Perpetual Options can be held indefinitely, reducing expiry timing risk

Continuously funded instruments

• Instead of paying a large premium upfront, traders pay (or receive) a continuous funding rate based on market conditions to hold a position

Simplified derivatives

• They follow the same straightforward PnL structure as perpetual futures (entry price, exit price, funding)

Core Idea

Perpetual Options fit naturally within the derivative framework crypto traders know and love (perpetuals) while offering a new way to access leverage without taking price-based liquidation risk.

Why Trade Perpetual Options?

Perpetual options blend the upside of leverage with built‑in downside protection—so you can stay in a trade, without the constant threat of getting liquidated (by price).

In perp options, the extra funding also covers downside protection, so price swings are less deadly. In perp futures, funding simply pays for leverage.

Detailed Comparisons

Core Idea

Perpetual Options can be thought of as dated options with a time to expiry equal to their funding period (roughly 24 hours). However, instead of continuously buying new dated options as they expire, the funding mechanism automatically “rolls” your position forward.