What you are trading
A perpetual is a derivative contract whose value follows a reference market. You do not own the referenced token just because you hold a perpetual position. Unlike a dated future, a perpetual has no scheduled expiry; you close it, it is liquidated, or another protocol event ends it.
Long and short
A long position benefits when the position's price rises relative to entry and loses when it falls. A short position is the reverse. The actual result also includes fees, funding, slippage, and the prices at which orders fill.
Collateral and leverage
Collateral is the value supporting your account and positions. Leverage describes the ratio between position exposure and the collateral backing it. If $100 of collateral supports $500 of exposure, that is 5× exposure. The larger the exposure relative to collateral, the less adverse price movement the account can absorb.
Orders and fills
A market order seeks available liquidity now and may fill at more than one price. A limit order states the worst price you are willing to accept but may never fill. Conditional orders activate only after their trigger conditions are met. No interface can guarantee a fill, price, or execution time.
Mark price
The mark price is a protocol reference used for account calculations such as unrealized profit and loss and liquidation risk. It may not match the last traded price or the price available for an immediate fill.
Funding
Funding is a periodic transfer between long and short positions intended to help align the perpetual with its reference market. Depending on the rate and your side, you may pay or receive funding while a position remains open.
Liquidation
If account collateral falls below the required maintenance margin, the protocol may reduce or close positions. Liquidation protects the exchange from undercollateralized accounts; it is not a stop-loss and can occur before you choose to exit.
How this maps to Amethyst
Amethyst shows PERPL market state and helps you prepare and submit orders. PERPL provides exchange mechanics and execution; Monad is the settlement network. Before submitting, review side, order type, size, price, leverage, fees, and exits. Then monitor both the position and account state.