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Perpetuals let you take leveraged long or short positions on crypto, indices, and commodities directly in KriptoK, powered by Hyperliquid. Here is how the mechanics work.
A perpetual (or "perp") is a derivative contract that tracks the price of an underlying asset without an expiration date. Unlike a traditional futures contract, which settles on a fixed date, a perpetual can be held indefinitely. You are not buying or holding the underlying asset itself. You are holding a contract whose value moves with that asset's price.
KriptoK's perpetuals are powered by Hyperliquid, an onchain perpetuals exchange. Positions are opened and settled on Hyperliquid's infrastructure directly from the KriptoK app.
Spot: You buy the actual asset. If you buy 1 ETH, you own 1 ETH. Your maximum loss is limited to what you paid.
Perpetuals: You open a contract that tracks the asset's price, using borrowed exposure (leverage). You can take a position larger than your deposited capital, in either direction (price up or price down). Losses can exceed your initial margin if a position is not closed or adjusted before liquidation.
A long position profits if the asset's price increases. A short position profits if the asset's price decreases. Both are available on every perpetual market in KriptoK.
Leverage is the ratio between your position size and the margin (collateral) you put up. 10x leverage on a $100 margin deposit opens a $1,000 position. Leverage magnifies both gains and losses proportionally. Maximum leverage varies by asset. For example, BTC supports up to 40x, while lower-liquidity assets typically support 3x to 10x.
Margin is the collateral backing your position.
KriptoK supports both isolated and cross margin modes.
Liquidation is the forced closure of a position when losses erode the margin below the maintenance threshold required to keep it open. Once liquidated, the position is closed at the prevailing price and the allocated margin is lost.
The specific price at which a position gets liquidated, calculated from your entry price, position size, leverage, and margin mode. This price moves as you add or remove margin.
Mark price is used to calculate unrealized profit/loss and to trigger liquidations. It is designed to resist sudden, temporary order book movements.
Oracle price is an external reference price (a weighted median from major exchanges) used specifically for funding rate calculations.
Funding is a periodic payment exchanged directly between long and short position holders. It is not a fee charged by KriptoK or Hyperliquid. It exists because perpetuals have no expiration date, so funding keeps the contract price anchored to the spot price.
On Hyperliquid, funding is calculated on an 8 hour basis but settled hourly, at one eighth of the computed rate each hour. A position held across an hourly settlement pays or receives funding based on its size at that moment. A position opened and closed within the same hour pays no funding.
The total value of a position, calculated as position size multiplied by the current price. This is distinct from margin. Order value reflects your full market exposure; margin reflects your collateral. This is the figure shown as Order Value in the KriptoK app.
Unrealized PnL: The current gain or loss on an open position, based on the mark price. It changes continuously and is not locked in.
Realized PnL: The actual gain or loss once a position is closed.
Once open, the position, its current PnL, and its liquidation price are visible from the Perps tab at any time.
KriptoK's perpetuals, via Hyperliquid, span several categories:
Maximum leverage is set per asset and is displayed on the market screen before you open a position. Available markets and their leverage limits can change. Always check the current terms in the app before trading.
This section is informational, not investment guidance.
KriptoK does not provide trading recommendations, position sizing guidance, or predictions about market direction. This article explains contract mechanics and terminology only.