On-Chain Perps vs CEX Futures
**CEX futures** offer deep liquidity and familiar UI with custodial wallets. **On-chain perps** keep self-custody but add smart-contract, oracle, and funding-rate complexity.
Step by step
1. Model funding
Perp funding can exceed trading fees on long holds.
2. Stress slippage
DEX perps thin out faster than Binance BTC perps in volatility.
3. Segregate capital
Never cross-collateralize life savings with leverage.
On-chain perps vs CEX
CEX wins UX and size; DEX wins custody for experienced traders.
- CEX futures: Deep books; KYC; counterparty risk.
- On-chain perps: Wallet custody; contract risk; transparent funding.
Use our calculators
Common mistakes
- Ignoring liquidation wicks
- Leaving API keys hot on CEX
FAQ
Are funding rates the same?
Similar mechanics—magnitudes differ by venue and asset.