How Does the Potential for a ‘Hard Fork’ during a Transition Affect the Pricing of Perpetual Futures Contracts?

The risk of a contentious hard fork, where the chain splits into two viable networks, introduces uncertainty about which chain will retain the perpetual futures contract's ticker and value. This can cause the perpetual futures funding rate to become highly volatile or deviate significantly from the spot price, as traders speculate on the relative value of the potential forked assets and hedge their positions.