Markets & risk
Discussion specifications, not final contract terms. No leverage, fees or funding rates are available to trade.
| Market | Proposed reference | Meaning of long |
|---|---|---|
| US2Y | Defined 2-year Treasury yield feed | Gains when the referenced yield rises |
| US10Y | Defined 10-year Treasury yield feed | Gains when the referenced yield rises |
| 2s10s | 10-year minus 2-year yield | Gains when that spread increases |
Reference selection
The specific benchmark, publisher, update policy, instrument rollover and redistribution license must be agreed. A daily published constant-maturity yield is not an executable intraday price. On-the-run and constant-maturity references are not interchangeable.
Units and P&L
Contract quantity and price encoding must explicitly define dollars of P&L per basis-point move. Raw yield percentages near zero and negative curve spreads require careful treatment; any offset used for positive price encoding changes notional-based fees and margin calculations.
Illustrative sensitivity only: Exposure: +$100 per basis point Yield move: +5 basis points Gross P&L: +$500 Before fees, funding, slippage and other costs
Position size is not trading volume
A $1 million bond portfolio with assumed modified duration 8 has approximately $800 of sensitivity per basis point. A linear hedge targeting that sensitivity could gain $8,000 on a 10 bp increase in the reference yield, before costs and basis differences. This does not mean $1 million of displayed perpetual trading volume: the contract’s price encoding and quantity determine that figure.
| Hypothetical desk activity | Monthly amount |
|---|---|
| 20 new hedges, each offsetting $1 million of bond exposure | $20 million underlying-equivalent openings |
| All 20 hedges closed in the same month | $20 million underlying-equivalent closings |
| Total open + close turnover | $40 million underlying-equivalent |
Illustrative arithmetic only. No customer has committed this flow. Underlying-equivalent turnover is not protocol-reported notional volume, open interest, deposits or revenue. Do not infer exchange fee revenue until contract units, fee basis, price encoding and fee share are defined. Opening turnover may include distinct positions; net exposures and simultaneous open interest can be much smaller.
Volume status
This project has no deployed trading market and no live trading volume. We have not verified Perpetuals.xyz’s mainnet volume. Testnet activity, if any, is not real-money turnover. Evidence of a testnet deployment does not establish that no later mainnet deployment occurred.
Funding is not the bond yield
Perpetual funding aligns market prices with a reference. It is distinct from coupon income, Treasury carry and a fixed-versus-floating SOFR payment. Model funding against the actual protocol implementation rather than copying an FX formula.
Margin and liquidation
Set risk limits using dollar sensitivity and stress losses. Maximum leverage is not a customer benefit by itself. Validate protocol margin modes, maintenance tiers, collateral removal and liquidation behavior for the chosen market.
Oracle failure and weekends
Do not assume trading can be frozen while positions remain untouched. Hyperliquid documents haltTrading as cancelling orders and settling positions at the current mark. Weekend quoting also creates risk when underlying hedges or reference feeds are unavailable. Failure and recovery policies require testing.
Principal risks
Reference and hedge basis, funding variability, thin liquidity, liquidation, USDC exposure, protocol operation, oracle errors and regulatory eligibility. A synthetic yield hedge does not replicate every bond’s duration, convexity or credit exposure.