The Misguided Debate Over Perpetual Futures and Systemic Risk
The introduction of perpetual futures to regulated markets has sparked concerns about systemic risk. However, the risk is not inherent to the contract itself, but rather a result of the venue's design. The venue's choices, such as leverage caps, margin, funding design, and default management, determine the level of risk. The recent crypto market deleveraging episodes, including the October 2025 c…