Comparison
Polymarket Perps vs Polymarket Prediction Markets (2026)
Polymarket Prediction Markets resolve to YES or NO on a defined event by a specific date, settled by the UMA optimistic oracle. Polymarket Perps stay open indefinitely, track an asset price continuously, and settle PnL via funding rates and mark-to-market on pUSD collateral.
Use prediction markets to take exposure to discrete events ("Will the US recession be declared in 2026?"). Use Perps to take leveraged, continuous exposure to a price ("Long BTC at 5x"). Sophisticated traders combine both — for example, hedging a binary election outcome with a perp position in a correlated asset.
At a glance
| Polymarket Perps | Polymarket Prediction Markets | |
|---|---|---|
| Settlement | Continuous mark-to-market (Perps) | Discrete UMA settlement (Predictions) |
| Time horizon | Indefinite, exit anytime | Bounded by resolution date |
| Leverage | Up to 250x (marketing) | 1x (no leverage) |
| Collateral | pUSD | USDC.e |
| Funding cost | Periodic funding payments | Zero |
| Liquidation | Yes (margin call) | No |
| Best use | Speculation and hedging on prices | Speculation and hedging on events |
Continuous, leveraged price exposure with no resolution date and exit-anytime liquidity.
Binary or multi-outcome event exposure with a defined resolution date and oracle.
Watch out for
- Perps decay through funding rates over time; prediction markets do not.
- Liquidation risk on Perps is real — leverage cuts both ways.
- Prediction markets settle to $0 or $1 at expiry, so they are inherently bounded; perps are not.
FAQ
- Can I hedge a prediction-market position with a perp?
- Sometimes. If the binary event correlates with a tradable asset (e.g. an FX move conditional on a central-bank decision), pairing a binary YES contract with an offsetting perp position is a valid hedge. PolyArb tracks correlated pairs across both Polymarket products and flags the basis spread.