In general, traditional futures contracts have short expiration cycles (typically monthly or quarterly). Traders are required to frequently roll their positions to new contracts, which creates trading friction and basis risk.
Using Coinbase Derivatives Exchange as an example, the perpetual-style and traditional futures differ in the following ways:
| Contract duration | 5 years | 1 month |
| Contract renewal | Only one contract listed per 5-year period (except first trade date of expiration month when next contract auto-lists) | Three contract months available |
| Expiration | 5 years | Monthly or quarterly |
| Price tracking | Closely aligned to spot price via funding mechanism | Forward-looking prices that may deviate from spot |
| Trading hours | 24/7 (with maintenance windows) | 24/7 (with maintenance windows) |