Why should anyone use perps after what happened on Friday? Are perpetual options simply a superior product?
Last Friday proved what we’ve known all along:
Perps break under pressure.
A few volatile minutes were all it took for liquidations to wipe out traders. Not because they were wrong, but because the system is built to nuke you when volatility spikes.
Perpetual futures force traders into a binary reality:
✅ Stay above margin → you’re safe
❌ Dip below for a second → you’re liquidated
Even if your position would have recovered minutes later, your collateral is gone.
These liquidations aren’t just painful, they amplify volatility.
Each liquidation pushes price further, triggering more liquidations… and the death spiral begins.
It’s not just trader losses—it’s systemic fragility.
Perpetual options solve this problem by design.
In perps, a one-second wick is enough to erase your entire position, even if the market reverses right after. Options don’t work that way.
A sudden price move only impacts options in proportion to your delta. The more price moves against you, the less exposed your position is to the price movement. This effectively caps any losses!
We believe this is the evolution of perps.
Perpetual options keep the best parts: continuous trading and capital efficiency—without the hidden liquidation time bomb.
Your trade should be judged by its thesis, not a single candle wick.
One of the things that I love in the crypto space is the #vault technology. Change my mind but they can ship new strategies faster than traditional funds and make sophisticated trading or income products accessible to anyone with a wallet. Who would have thought that one day we would be able to tokenise positions giving users programmatic access to diversification, risk controls, and compounding that run 24/7.
Someone said that we must arbitrage to become arbitrage free...
I've always liked the idea of the invisible hand making sure that everything is priced well. There's no best time to make the most of the arbitrage then during the first years after the product release.
Do you get it?
I did some thinking recently. I don't recommend it. I went back to trade options in @DeribitOfficial and I decided to use the #eSSVI model to detect some arbitrage opportunities with it IV surface. Guess what...Everyone is doing it.. So I went back to Panoptic :)