The debate over perpetual futures and their potential to import systemic risk has gained attention as they enter regulated markets. However, Chris Tyrer, President of Bullish Exchange, argues that the risk does not come from the contract itself, but rather from venue design. According to Tyrer, factors such as leverage limits, margin rules, index construction, and default handling are the true sources of risk.
This perspective, as reported by CoinDesk, suggests that the focus of the debate may be misguided. Rather than targeting perpetual futures as a whole, critics should be examining the specific design elements of the venues on which they are traded.
Perpetual futures are a type of financial derivative that allows investors to bet on the future price of an asset without an expiration date. They are commonly used in cryptocurrency markets, where they can provide a means of speculation and hedging.