Why do perpetual contracts attract so many traders? Simply put—it's four words—peace of mind and speed. No expiration date, no delivery required, enter when you want, exit when you want, it feels like the risk has been completely eliminated by "technology."

But the reality is not like that at all.

It's not that you haven't paid a price; it's just that the bill has been broken into fragments, scattered in corners you can't see.

**Compare the market to a standardized race track**

Traditional futures, options, delivery dates—these mechanisms are essentially safety barriers. They won't make you run faster, but they will force you to stop at critical moments—settlement must happen.

Perpetual contracts are like a heavily modified car built for extreme speed, with the braking system forcibly removed. It certainly speeds up. But the problem is: the brakes haven't disappeared; they've just been replaced with a form you're unfamiliar with.

**Risks haven't disappeared; they've just been hidden**

The risk in traditional futures is concentrated at the delivery date—you either close your position or deliver, there are no other options.

The cleverness of perpetual contracts lies in breaking up this "settlement day" into two mechanisms: funding rate and ADL auto-liquidation.

The system doesn't wait until the last day to settle accounts; it is constantly and in real-time clearing risks. It may seem dispersed, but in fact, it is continuously transferring risk.

**The insurance pool is not a benefit; it's risk transfer**

Many people see the insurance pool as "platform protection for users." In fact, it should be understood the other way around: when the market experiences extreme volatility, and losses exceed the margin, and positions cannot be fully closed, this deficit doesn't just disappear—someone has to bear it. That "someone" ultimately is the collective market participants footing the bill.