What Are the Two Main Components That Contribute to Basis in a Financial Derivative?

The two main components are the cost of carry and market expectations. The cost of carry includes the expenses incurred to hold the underlying asset until the futures expiration, such as storage costs, insurance, and financing costs (interest).

Market expectations reflect the collective view of future supply and demand conditions, which can cause the futures price to deviate from the spot price. In crypto, the cost of carry is often dominated by financing costs.