> For the complete documentation index, see [llms.txt](https://docs.trade.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.trade.xyz/perp-mechanics/overview.md). # Overview A perpetual derivative contract (or "perp") is a derivative product that allows traders to speculate on an asset's price. Unlike traditional futures, which settle on a fixed date, positions can be held indefinitely. Perps rely on a funding rate mechanism to keep the contract price aligned with the underlying spot price. XYZ perpetuals are linear contracts, margined and settled in USDC. The oracle is denominated in USD\*, and no USDC/USD conversion is applied. Economic exposure is therefore *quanto* with USD P\&L cash-settled in USDC. Listed on the XYZ HIP-3 deployment, XYZ perpetual's matching, order types, funding, liquidations, and auto-deleveraging are managed by HyperCore. Three components are bespoke: the *oracle price,* the *mark price,* and the *external price*. The *Relayer* is responsible for computing oracle, mark, and external prices for each asset and broadcasting updates to HyperCore. TradeXYZ manages a distributed set of Relayer instances which transmit updates approximately every 3 seconds. XYZ's oracle updater address: `0x1234567890545d1Df9EE64B35Fdd16966e08aCEC`. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.trade.xyz/perp-mechanics/overview.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.