Perpetual futures are a type of cryptocurrency derivative that allows traders to speculate on the future price of an underlying cryptocurrency without having to take physical delivery of the asset. They are similar to traditional futures contracts, but with some key differences. One of the most important differences is that perpetual futures do not have an expiration date, meaning that they can be held indefinitely. This makes them a popular choice for traders who want to profit from long-term price movements. One of the key risks associated with trading perpetual futures is the risk of liquidation. Liquidation occurs when a trader's margin balance falls below a certain level, forcing them to sell their position to cover their losses. The liquidation scale and liquidation ratio are two important factors that determine how likely a trader is to be liquidated. The liquidation scale is the percentage of a trader's margin balance that is used to calculate their liquidation price. For example, if a trader has a liquidation scale of 50%, then their liquidation price will be 50% below their entry price. The liquidation ratio is the percentage of a trader's margin balance that is actually liquidated when they are stopped out. For example, if a trader has a liquidation ratio of 80%, then 80% of their margin balance will be liquidated when they are stopped out. The liquidation scale and liquidation ratio are both important factors to consider when trading perpetual futures. Traders who want to minimize their risk of liquidation should choose a liquidation scale and liquidation ratio that are appropriate for their risk tolerance and trading strategy.