Education

Everything you need to understand perpetual futures, on-chain order books, MEV protection, liquidations, and funding rates — explained for traders moving from CEXes to Solana DeFi.

Funding rate arbitrage earns yield by going long spot and short perp (or vice versa) to collect funding payments without directional risk. On BULK Exchange, this strategy benefits from 0 bps maker fees during Genesis Phase and portfolio margin that reduces required capital by up to 70%.

MEV (maximal extractable value) in perpetuals takes three forms: front-running large market orders, racing cancel-replace strategies, and exploiting liquidation events. BULK Exchange is the first perp DEX to address all three through a documented four-layer fair ordering system.

Liquidation happens when your margin falls below the maintenance threshold. Understanding the trigger conditions, how mark price differs from last-traded price, and how BULK Exchange handles liquidations differently from most exchanges can prevent unexpected losses.

A central limit order book (CLOB) is the matching engine used by every major stock exchange and most CEXes. It matches buyers and sellers at agreed prices using price-time priority. BULK Exchange is the first Solana perp DEX built on a fully deterministic CLOB with sub-20ms execution.

Perpetual futures are derivatives contracts with no expiry date. Instead of settling at a fixed date, they use a funding rate mechanism to keep price anchored to spot. They are the dominant trading instrument in crypto, with hundreds of billions in daily notional volume.