Perpetual Contract
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"A perpetual contract is a futures-like product but without an expiration date. Since its inception, perpetuals have become one of the most popular instruments for crypto trading. Its trading price is anchored to the underlying asset price index through a funding payment mechanism (called the funding rate).
The funding payment balances out between long and short positions by charging between them. While CeFi platforms hold customer deposits and control the overall functioning of the platforms, DeFi platforms like MCDEX are non-custodial.
This is the primary reason why trading a perpetual contract on a decentralized exchange is far more beneficial than trading on a centralized exchange such as BitMEX. The fact that decentralized exchanges have no control over your funds, it’s much safer to trade on decentralized exchanges."
