The Real Target of Systemic Risk in Perpetual Futures
The introduction of perpetual futures to regulated markets has sparked concerns about systemic risk. However, this criticism is misplaced, as the risk is inherent to the venue's design, not the contract. The venue's choices, such as leverage caps, margin rules, and default management, determine the level of risk. The recent deleveraging episodes in crypto, including the October 2025 cascade, were…