Introduction
Since MiFID II became the EU standard for derivatives, some exchanges converted their perpetual futures into expiry futures with a term of (usually) five years — also known as "X-Perps". At first glance they resemble classic perpetuals, but there are important differences.
What is a perpetual future?
A perpetual future ("perp") is a derivative contract without an end date. You can hold the position as long as your margin allows. The price tracks the spot market via a funding rate — a payment between longs and shorts every hour or every eight hours.
Perpetuals originated in crypto (BitMEX, 2016) and are now the most traded form of crypto derivatives worldwide.
What is an expiry future / X-Perp?
An X-Perp (long-dated future) is technically an expiry future with a term of, say, five years. At expiry the contract is cash-settled against the index price. During its life it behaves like a perpetual: funding rate, no daily expiry pressure.
Why exchanges choose this: under MiFID II an "expiry future" is easier to classify than a "perpetual", which is sometimes viewed as an indefinitely speculative retail product.
The key differences
| Aspect | Perpetual future | Expiry future (X-Perp) |
|---|---|---|
| End date | None | ~5 years |
| Funding rate | Yes | Yes |
| Price deviation from spot | Small | Can widen over a long term |
| At expiry | N/A | Cash settlement |
| Roll-over needed | No | No (contract usually long enough) |
| Classifiable as a "future" under MiFID II | Difficult | Yes |
Why do some exchanges choose 5-year futures?
- MiFID II classification — a clearer product for supervisors.
- Retail protection — an expiry date makes it less "perpetually speculative".
- Existing broker infrastructure — traditional brokers know expiry futures.
- Accounting — simpler for institutional parties.
What does it mean for you?
For 99% of traders there is little practical difference, provided the term is long enough that you never roll over, the funding mechanics are identical, and liquidity is sufficient.
The main risk with expiry futures is basis drift — the contract price can deviate from spot, especially as expiry approaches.
Frequently asked questions
Are X-Perps the same as perpetuals?
Almost. Day-to-day trading feels identical, but there is a technical end date.
What happens to my position when an X-Perp expires?
You are cash-settled against the index price; the position closes automatically.
Do I pay more funding on X-Perps?
Funding calculations are identical to true perpetuals.