Utilizing Perps on Rainbow is here! In this guide, we'll give an overview on what Perps are and how to access them within your Rainbow Wallet.
Understanding “Perps”:
Perps, short for perpetual futures (also known as perpetual swaps), are a type of contract that enables traders to look into the price of an asset without owning the asset and without a fixed expiration date. Unlike traditional futures, which settle on dates, perps are structured so trades can be held indefinitely—as long as you maintain the required margin and continue paying periodic funding fees.
How Perps Work:
Entering a Position: Traders choose to go long (bet price will rise) or short (bet price will fall) and allocate margin accordingly.
Funding Rate Dynamics: The funding rate is calculated periodically based on differences between the perp price and the spot price.
Margin & Liquidation: Traders must maintain a minimum margin. Falling below it may trigger auto-liquidation, closing the position to prevent further losses.
No Expiry: You can keep a position open indefinitely.
Settlement: When closing the position, it’s settled in cash (e.g., USDT) based on the net profit or loss—no physical delivery of the underlying crypto.
Using Perps in Rainbow:
You can access Perps directly on your home wallet screen underneath your respective assets.
You'll see a Perps section where once tapped, you'll enter the Perps flow to open and view positions.
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