> ## Documentation Index
> Fetch the complete documentation index at: https://docs.architect.exchange/llms.txt
> Use this file to discover all available pages before exploring further.

# Perpetual Futures Basics

## What is a Perpetual Future?

A **Perpetual Futures contract** is similar to a traditional futures contract that never expires. It uses periodic settlements (e.g., daily) to exchange cash differences between the **mark price** and the **underlying benchmark price**.

## Expiration

Perpetual Futures **do not expire**, allowing indefinite holding as long as margin requirements are met.

## Tracking Mechanism

They use a **funding rate mechanism** to keep the contract price aligned with the underlying index.

## Are they crypto products?

No. Although popular in crypto markets, **Architect's Perpetual Futures** track traditional assets and **do not have crypto underlyings**.

## Trading Mechanics

Perpetual Futures trade on an **order book** based on **price-time priority**.
Orders at better prices are matched first; for equal prices, earlier orders are matched before later orders.

## Advantages

* No expiry or rollover costs
* Cash-settled (no physical delivery)
* Regular funding keeps price aligned
* 24/7 trading
* Efficient leverage and margin
* Ability to short positions