Polymarket has launched its perpetual futures trading, allowing leverage up to 20x on various assets but restricting access for U.S. traders.
Polymarket Expands Offerings with New Perpetual Futures
On September 3, Polymarket introduced a new trading product called Polymarket Perps, offering perpetual futures with leverage options up to 20x. Initially, the platform launched with 10 markets, which quickly expanded to 67, covering various assets including cryptocurrencies, stocks, and commodities.
Leverage limits vary by asset type: cryptocurrencies, the S&P 500, oil, gold, and silver allow for up to 20x leverage, while individual stocks and tangible assets are restricted to 10x. This launch represents a significant shift for Polymarket, which is traditionally known for its binary betting on events like elections and sports.
Perpetual futures differ from typical contracts by tracking the price of the underlying asset continuously, with no expiration date. To keep the contract aligned with spot prices, a funding rate adjusts payments between long and short traders every hour, capped at 4% in either direction.
However, U.S.-based traders cannot access these new perpetual futures and are redirected to Polymarket US, a separate exchange under CFTC regulation due to prior compliance issues. This separation followed a settlement in 2022 that involved a $1.4 million fine for operating an unregistered swaps facility.
Polymarket aims to attract users by offering competitive liquidity and low fees in the crypto perpetual futures arena. They also promote the ability to execute complex trades from one account, such as taking long positions on Bitcoin while shorting the S&P 500.
While Polymarket has entered the perpetual futures space, it faces competition from Kalshi, which was the first to receive CFTC approval for Bitcoin perpetual futures in May, and Hyperliquid, a decentralized exchange poised to enable U.S. access soon. As the market evolves, Polymarket's new offerings may reshape the landscape of crypto trading.
