Polymarket Perps (crypto perpetual futures) launched on September 3, opening with ten markets and expanding to sixty-seven markets within hours of launch. The product’s leverage caps were set at up to 20x for cryptocurrencies and broader assets including the S&P 500, oil, gold and silver, while leverage for individual stocks was limited to up to 10x. These terms were published at rollout alongside the initial market listings.
This introduction focuses on the launch timing, the rapid expansion in listed markets, and the differing leverage caps across asset categories. It does not describe product mechanics, fees, or liquidation details. The preceding sentences summarize the core launch details requested.
Polymarket Perps operates on several key mechanics designed to manage leverage and risk. The maintenance margin, a critical aspect of position management, is set at half of the maximum leverage allowed. This means that if a position is taken with full leverage of 20x, the margin required is significantly reduced to avoid liquidation. Speaking of liquidation, for a fully leveraged 20x position, a margin loss of approximately 2.5% could trigger liquidation. Additionally, Perps features an hourly funding rate mechanism which adjusts and redistributes payments to ensure the market price aligns closely with the index price, capped at a 4% fluctuation in either direction per hour. A distinctive aspect of Perps is its perpetual nature, allowing traders to hold positions without a predetermined expiry date, maintaining alignment with the underlying asset price continuously.
Polymarket Perps operates within a stringent regulatory environment and competitive landscape. Geographically, it restricts access from the U.S., Canada, Cuba, Iran, North Korea, Syria, Crimea, Donetsk, and Luhansk, steering U.S. traders to Polymarket US.
In 2022, Polymarket settled with the U.S. Commodity Futures Trading Commission (CFTC), agreeing to pay a $1.4 million fine and close down contracts that did not comply with regulations. On the competitive front, Kalshi has emerged as a significant player, receiving CFTC approval for Bitcoin perpetual futures on May 29 and actively pursuing further approvals for other altcoins and commodities.
Meanwhile, Hyperliquid has established a dominant position in on-chain perpetuals trading, also engaging with the CFTC to facilitate market entry for U.S. traders.
Polymarket launched Perps, a perpetual futures product, and expanded its market listings rapidly after debut; the product provides tiered leverage across asset types, with higher caps for cryptocurrencies and broad-market commodities and lower caps for individual stocks, and it employs margin and funding mechanisms to manage positions. Polymarket enforces geographic access restrictions and routes U.S. traders to an onshore platform, has a prior regulatory settlement with the CFTC, and operates alongside competitors that include an onshore exchange with regulatory approvals and an on-chain perpetuals provider engaging with regulators.
