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Perpetual Contracts by BYDFi: A Crypto Contract Review
BYDFi’s perpetual contracts offer 200x leverage, advanced hedging, and unrealised profit reinvestment. But what are perpetual contracts and how do they work? Are they truly worth the risk in 2025’s volatile market? Let’s explore in this detailed crypto contracts review!
One of the popular features offered by BYDFi is perpetual contracts. They are a type of derivative product that allows traders to speculate on the future price of a cryptocurrency without the need for settlement or delivery.
This crypto contracts review examines whether BYDFi's perpetual contracts represent a viable trading option for different trader profiles, considering security, costs, features, and overall value proposition.
BYDFi's perpetual contracts use a unique funding mechanism to ensure the contract price stays close to the spot price of the cryptocurrency. This mechanism adjusts the funding rate periodically based on market conditions, helping to prevent large deviations between the contract price and the spot price.
With BYDFi's perpetual contracts, traders can enjoy the benefits of leverage and the flexibility of perpetual trading.
The exchange offers perpetual contracts with leverage of up to 200x across more than 400 trading pairs, positioning itself as a competitive alternative to established platforms like Bybit.
Interesting news: BYDFi is now an Official Cryptocurrency Exchange Partner and sponsor for Newcastle United, with a multi-year relationship signed with the Club in 2025.
Understanding perpetual contracts
A perpetual contract is a type of derivative instrument. Unlike traditional futures contracts, it does not have an expiry date. This means traders can hold a position indefinitely, as long as margin requirements are met.
Key features of perpetual contracts include:
- No Expiry Date: Traders are not forced to close their positions on a fixed date.
- Leverage: They can use borrowed funds to increase exposure, amplifying both profits and losses.
- Funding Rates: Periodic payments between buyers (long positions) and sellers (short positions) keep the contract price close to the spot market.
BYDFi’s Approach to Perpetual Contracts
BYDFi, originally launched as BitYard, has built a strong reputation for offering an easy-to-use trading ecosystem. Its perpetual contracts are central to this offering. The platform supports two major types:
- USDT-M Perpetual Contracts: These are settled in USDT (Tether), the largest USD-pegged stablecoin, which serves as the crypto equivalent of the U.S. dollar. This contract type allows traders to use USDT as margin for various trading pairs, providing consistency in margin calculation across different positions. The platform offers approximately 400 trading pairs in this category.
- COIN-M Perpetual Contracts: These contracts are settled in the underlying cryptocurrency itself rather than a stablecoin. This option appeals to traders who prefer to maintain exposure to the base currency rather than converting to stablecoins. Major pairs available include BTCUSD, XRPUSD, ETHUSD, and DOTUSD.
Leverage and trading options
One of the defining aspects of BYDFi perpetual contracts is the high leverage available. Traders can access up to 200x leverage, depending on the trading pair and risk management settings.
For example:
- With 10x leverage, a trader controlling $1,000 worth of Bitcoin would only need $100 as margin.
- With 200x leverage, the same exposure requires just $5, but the risk of liquidation becomes extremely high.
BYDFi also offers lite contracts and leveraged tokens, which allow traders to use leverage in simpler ways without actively managing complex derivatives. These products are designed to provide exposure without the need for detailed contract management.
Key Features of BYDFi Perpetual Contracts
- Unrealised profits for new positions: This innovative functionality allows traders to use unrealised profits from open positions as margin to establish new positions. This feature improves capital efficiency by enabling traders to reinvest profits without waiting to close existing positions, particularly advantageous in fast-moving markets where timing is critical.
- Advanced hedging support: The upgraded system enables traders to maintain both long and short positions simultaneously on the same trading pair. This functionality facilitates sophisticated risk management strategies, allowing traders to hedge exposures during periods of high volatility or market uncertainty.
- Automatic cross-margin allocation: In this mode, all funds in a user's account are aggregated to support multiple positions simultaneously. The system automatically distributes funds across open positions, reducing the risk of liquidation on any single trade and enhancing overall account stability.
- Isolated and cross margin options: Traders can choose between isolated margin (where funds are allocated to specific positions, limiting risk to predetermined amounts) and cross margin (where all available balance serves as collateral for all positions).
- Diverse order types: The platform supports multiple order types including market, limit, stop-loss, and take-profit orders, providing traders with precise execution capabilities.
- Integrated trading tools: BYDFi offers advanced charting capabilities with multiple technical indicators, drawing tools, and time frame options to facilitate comprehensive market analysis.
User Experience
BYDFi makes an effort to simplify derivatives trading through its interface. It provides:
- Classic Mode: For traders who want a straightforward order book and chart.
- Advanced Mode: For experienced users who require more analytical tools.
- Simple One-Click Mode: For beginners who want minimal complexity.
Security and Compliance
Trading perpetual contracts involves high risks, so platform reliability is crucial. BYDFi takes several measures to strengthen trust:
- Holds Money Services Business (MSB) licences in the United States and Canada.
- Publishes Proof of Reserves (PoR) reports to demonstrate asset backing.
- Works with third-party partners for secure custody and fiat on-ramp services.
- Provides multi-factor authentication (MFA) and cold wallet storage for client assets.
Are They Worth Trying in 2025?
In 2025, perpetual contracts remain one of the most actively traded products in crypto markets. On BYDFi, they are supported by a broad choice of pairs, flexible settlement methods, strong security, and user-friendly modes. For:
- Experienced traders, BYDFi perpetual contracts offer high liquidity, fast execution, and advanced strategies with leverage.
- Beginners, the simplified contract types and one-click trading tools make them more accessible than on some other exchanges.
This crypto contracts review highlights the key considerations and potential rewards of trading BYDFi’s perpetual contracts in the current market.
