Polymarket Perps explained: leverage, funding and liquidation
Perpetual futures let you go long or short with leverage and no expiry. A plain-language guide to margin, funding payments and liquidation before you trade them.
· 1 min read
Perpetual futures ("perps") are contracts that track the price of an asset without ever expiring. You can go long if you think the price will rise or short if you think it will fall, and you can use leverage. That flexibility is exactly why they need care.
Margin and leverage
When you open a perp position you post margin, the collateral that backs it. Leverage is the ratio between your position size and your margin. With $100 of margin at 5x leverage you control a $500 position.
Leverage magnifies both directions: