Key Concepts

Perpetuals

Assets traded on SpookySwap are on-chain perpetuals, a type of bilateral contract that never expires. When a position is closed, a cash-settlement is exchanged between the long and the short equal to the price difference between entry and exit, scaled by the position’s leverage.

Collateral & Cross-Margin Account

To send and accept intents and ensure solvency, users deposit collateral (USDT) into a cross-margin account. Cross-margin aggregates margins across positions so unrealized gains and losses offset, improving capital efficiency and reducing unnecessary liquidations compared to isolated margin. SpookySwap acts as a decentralized, trustless clearing house for these contracts.

Funding Rates

Because perpetuals have no expiry, their price can drift from spot. Funding rates are periodic payments between longs and shorts that help anchor the perp price to the underlying.

• Positive funding → longs pay shorts (typical in bull markets).
• Negative funding → shorts pay longs (typical in bear markets).

Hedgers that mirror exposure on third-party venues (e.g., CEXs) may face funding there as well; support for funding is planned to be integrated into the system.