What is Fufuture?

Overview

As modern blockchain technology continues to mature, decentralized financial trading models have rapidly emerged as an influential trend. To stay at the forefront of this evolution, we are introducing our innovative decentralized risk-free perpetual options trading platform—Fufuture.

Fufuture boasts features such as on-chain long-term options trading, zero-slippage trades, high-leverage trading, the elimination of forced liquidation risks, and a dual liquidity pool mechanism. Our primary objective is to offer traders a secure, transparent, efficient, and low-risk trading environment. With the Fufuture perpetual options platform, traders can seamlessly engage in on-chain long-term options trading, alleviating concerns related to rolling over positions and other associated risks. Fufuture is designed to redefine the landscape by delivering a truly decentralized and risk-free perpetual options solution.

What are Perpetual Options?

Perpetual options are a novel financial derivative, fundamentally merging features of traditional options with those of perpetual contracts. Before delving into perpetual options, let's first review the basic concepts of traditional options and perpetual contracts:

• Traditional Options: An option is a contract that grants the holder the right (but not the obligation) to purchase or sell an asset at a specific price at some point in the future. Options have a set expiration date, after which they become void.

• Perpetual Contracts: A perpetual contract is a type of contract that doesn't have a fixed expiration date, allowing traders to buy or sell an asset. They typically maintain a consistency between the contract price and the underlying asset price through a funding rate mechanism.

Perpetual Options, hence, are a financial derivative that incorporates characteristics of both the aforementioned traditional options and perpetual contracts. They permit the holder to buy or sell the underlying asset at a particular strike price without a fixed expiration date. Like traditional options, perpetual options offer the right to buy or sell the underlying asset but not the obligation. At the same time, drawing from the features of perpetual contracts, perpetual options do away with the fixed expiration date, allowing the holder to exercise the contract at any time, or trade these options on-chain, aiming to achieve capital appreciation or hedge against market risks.