Crypto mechanics
The idea
Spot exposure and perpetual derivatives create different obligations. Perpetual contracts can include funding transfers, leverage and liquidation rules. A position can be liquidated before a longer-term price view plays out. The mark price used for risk controls may differ from the last traded price.
A worked example
A leveraged long can lose through price movement, fees and funding. A correct eventual direction does not reverse an earlier liquidation.
Try it yourself
Read a sample contract's funding interval, margin rules and liquidation-price definition before simulating a position.
A mistake to avoid
Using a spot price chart as a complete description of derivative-account risk.