How Do Perpetual Futures Contracts Differ from Traditional Futures in the Context of Liquidation?

Traditional futures have a fixed expiration date, and liquidation occurs upon margin failure before that date. Perpetual futures have no expiration, relying on a "funding rate" mechanism to anchor the price to the spot market.

Liquidation in perpetuals is solely triggered by margin failure, often amplified by high leverage, making them more prone to continuous, cascading liquidation cycles.