Perpetual Swap Settlement refers to the mechanism by which the funding rate exchange occurs for perpetual futures contracts, which lack a traditional expiry date. This process finalizes the periodic exchange of net funding obligations between long and short positions. Finality in this context is achieved through on-chain oracles or internal contract logic.
Transaction
Each funding payment is a discrete transaction that must be processed by the network, incurring gas costs for both counterparties or the protocol. Managing these transaction volumes is key to scalability.
Mechanism
The settlement mechanism must be robust and transparent to maintain trust in the derivative’s valuation relative to the spot market.
Meaning ⎊ The Cryptographic Settlement Layer provides the mathematical finality requisite for trustless asset resolution and risk management in global markets.
