Polymarket expanded its business from predictive markets to leveraged derivatives. On September 3, the platform launched perpetual contract products Perps, initially opening up to 10 markets, which increased to 67 within a few hours, covering crypto assets, stock indices, commodities, and some individual stocks.
The number of markets expanded to 67 within just a few hours in the first batch.
The first batch of contracts includes Bitcoin, Ethereum, Solana, HYPE, Gold, Silver, WTI Crude Oil, S&P 500, NASDAQ 100, as well as a contract that tracks SpaceX shares. Unlike Polymarket's previous "yes or no" settlement prediction contracts, perpetual contracts do not have an expiration date, and the price continuously tracks the underlying asset.
Platform documents show that this type of contract uses a fund rate mechanism once per hour to keep the contract price as close to the spot price as possible. Polymarket sets the upper limit for the fund rate at 4% per hour in both directions.
Up to 20 times higher returns on encryption and commodities
According to the product description, encryption assets, S&P 500, crude oil, gold, and silver can use a leverage of up to 20 times; the leverage limit for individual stocks and other real-world assets is 10 times. The listed stock contracts include Tesla, Nvidia, Apple, and Coinbase among 36 other individual stocks.
The maintenance margin requirement is set at half of the maximum leverage. This means that if a trader opens a position with 20 times full leverage, the position may be forcibly closed when the margin loses about 2.5%.
American users are being directed to an independent platform
This product is not available to users in the United States. As stated on the FAQ page, users from the United States, Canada, Cuba, Iran, North Korea, as well as regions such as Crimea, Donetsk, and Luhansk are not able to place Perps orders.
American users will be diverted to Polymarket US. This is another trading platform under Polymarket that is regulated by the U.S. Commodity Futures Trading Commission (CFTC). The operation of these two platforms in parallel is related to the company's settlement with the CFTC in 2022 and CFTC. At that time, regulators determined that the company was operating an unregistered swap trading facility and imposed a fine of $1.4 million, while also requiring it to close non-compliant contracts.
Competition in the perpetual contract sector intensifies
In the US domestic market, Kalshi has taken the lead. On May 29th, CFTC approved its Bitcoin perpetual futures contracts, and subsequently, Kalshi applied to list more than a dozen altcoin perpetual products, as well as a copper contract.
The main competitor in the field of on-chain perpetual contracts is Hyperliquid. Reports mention that Hyperliquid is in communication with CFTC to strive for an opening to US traders as soon as possible. Bloomberg previously also stated that Hyperliquid has commenced negotiations with Kraken's parent company, Payward, regarding the relevant arrangements.
