Kyan Features: Perpetual Futures

Kyan is the first decentralized options exchange to seamlessly integrate perpetual futures as a core risk management tool.

Kyan is the first options exchange to seamlessly integrate perpetual futures as a core risk management tool. With perps, traders can hedge exposure instantly, fine-tune complex positions, and trade with greater control and efficiency.

This article breaks down how perps work on Kyan, why they matter for options trading, and what makes a delta one product essential for a truly professional-grade platform.

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What Are Perps?

Perpetual futures (perps) are derivative contracts that allow traders to speculate on the price of an asset without owning it and without any expiration date. Unlike traditional futures, perps roll over indefinitely, and their price stays anchored to the spot price through a mechanism called the funding rate. Depending on whether the perp trades above or below spot, traders will either pay or receive funding to keep prices aligned.

Perpetual futures (perps) are among the most common delta one products, meaning their price typically moves nearly 1:1 with the underlying asset. They do not contain embedded optionality (unlike options) and, by default, offer linear exposure to price movements.

Why Options Need Perps

Options provide leverage, flexibility, and exposure to volatility, but their effectiveness depends heavily on how they’re managed within a broader trading setup. On their own, single-leg options leave traders exposed to directional risk and require precise adjustments to maintain a desired strategy profile.

To unlock their full potential, options traders need delta one products, like perps, which allow them to hedge underlying price movements, fine-tune strategy greeks, and reduce margin requirements through better risk management. Perps are essential for professional-grade options trading, and here’s why.

Hedging Directional Risk

Every options position carries some form of directional exposure. For example, a trader who sells a BTC call option benefits if the price stays flat or decreases, but loses if the price rises. Without a way to counterbalance this risk, they’re exposed to sudden moves in the underlying asset.

Perps solve this by allowing the trader to open an offsetting position. This lets them remain delta-neutral or adjust exposure dynamically as market conditions change, without needing to exit or modify the option itself.

Multi-leg Optimization

Multi-leg options strategies like straddles, strangles, butterflies, and iron condors are designed to take advantage of factors like volatility, time decay, or defined risk. However, these strategies often carry residual directional exposure.

Perps can be used to fine-tune a position’s delta so the trader can focus entirely on the strategy’s core thesis (such as betting on volatility expansion or contraction) rather than being exposed to underlying price moves. For instance, in a straddle (buying a call and a put at the same strike), a trader might adjust delta with a small perp position to better center their exposure if the market shifts after entry.

Read this article to learn more about multi-leg strategies on Kyan.

Improved Capital Efficiency

Beyond hedging, the integration of perps with options enhances capital efficiency, especially on Kyan where the portfolio margin system evaluates risk across all positions holistically. If a trader uses perps to offset risk in an options strategy, the overall portfolio becomes less risky, which translates to lower margin requirements.

This is particularly powerful in strategies with opposing legs. Instead of tying up capital in fully collateralized, isolated positions, traders on Kyan can redeploy freed-up capital for additional strategies, increasing their potential returns without taking on extra risk.

If you want to find out more about maximizing capital efficiency, check out this article.

How Kyan Integrates Perps

Kyan is the first decentralized options exchange to introduce perpetual futures as a built-in hedging tool, made possible by its portfolio margin system. This breakthrough lets traders reduce directional risk on complex options strategies with just a click. When building a combo trade, users can easily add perps to offset exposure, and Kyan automatically calculates the appropriate amount to minimize risk.

This streamlined experience removes the friction of manual hedging and allows traders to focus on strategy instead of execution. With real-time risk analysis, smart margining, and a user-friendly interface, Kyan gives traders the tools to manage PnL more effectively and trade with greater capital efficiency. The result is a faster, more powerful way to trade options with professional-grade risk control.

The Missing Link in Options Trading

Without delta one products like perpetual futures, options trading is incomplete. Perps allow traders to hedge directional risk, fine-tune multi-leg strategies, and reduce margin requirements, which makes them essential for efficient trading.

Kyan brings it all together by integrating perps directly into options trading. With a click of a button, traders can manage risk in real time, optimize their strategies, and maximize capital efficiency, all from a single interface powered by portfolio margining.

More about portfolio margin on Kyan in this article.

What Does Kyan Mean for Crypto Options?

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​Kyan will be a significant upgrade for anyone trading decentralized derivatives.

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