Expiry Futures

Learn about expiry futures on Injective

In , a futures contract is an agreement that requires two parties to transact an asset at a predetermined price at a specified time in the future. This allows traders to lock in a future price of the underlying asset to hedge or speculate on price movements. Injective offers a completely decentralized form of these futures contracts—expiry futures.

Similar to perpetual futures, expiry futures on Injective are traded with margin, allowing traders to access leverage. However, unlike perpetual futures, expiry futures have expiration dates and do not require funding payments, though liquidations may still occur if the maintenance margin threshold is not met.

Upon expiration, expiry futures markets are settled using oracle prices, typically set to the spot prices of the underlying assets. As a result, the price of futures tend to converge upon the spot price as the expiration date nears.

An interesting use of expiry futures on Injective are Pre-Launch Futures. Read on for more information.