What Are the Key Risks Associated with Perpetual Swap Trading?

The primary risks include high liquidation risk due to the common use of high leverage. Funding rate volatility is also a risk, as unexpected high payments can erode profits.

There is also the risk of market manipulation affecting the index price, which is used for liquidations and funding rate calculations. Furthermore, the risk of Auto-Deleveraging (ADL) remains, where profitable positions can be involuntarily closed.