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      HPC Report Highlights Benefits of Perpetual Contracts in Hedging and Price Discovery

      The Hyperliquid Policy Center (HPC) has released a report indicating that perpetual contracts enhance hedging strategies and facilitate better price discovery without negatively impacting the traditional futures market. The research suggests that these contracts serve as a complement to standard futures contracts, which have specific expiration dates, rather than acting as direct substitutes.

      The study analyzed trading patterns over 205 weekends, comparing Bitcoin trading with 19 weekends of on-chain crude oil perpetual contracts. It found that while traditional futures require forced rollovers, which can incur significant costs, perpetual contracts do not have this limitation. For instance, rolling a $10 million exposure on a Monday in April 2026 could cost approximately $950,000, while the cost on Friday would be around $110,000.

      Additionally, the report noted that the median transaction price for on-chain crude oil perpetual contracts during non-trading hours was about $1,300, roughly one percent of the benchmark WTI median price. An example provided in the report illustrated that during a weekend repricing event in March 2026, a $10 million position loss could be mitigated from approximately $1.58 million to about $62,000 when hedged through on-chain crude oil perpetual contracts.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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