DeFi · 59 / 86
On-chain derivatives
Perpetuals and options can live in a contract. You do not call a broker. You do call a liquidation engine. The engine is the product.
Where liquidation happens
The contract watches a price feed. Cross the line and the position is closed, often at a bad price, with a fee. There is no phone call.
Who you are trusting
The oracle, the insurance fund, the admin key, and the matching engine if there is one. A decentralised logo does not remove those.
This course does not teach you a leverage strategy. It tells you the contract will close you.
Check yourself
Does an on-chain perp mean no one can change the rules?
No. Check the admin key and the oracle anyway.
After this you can find the liquidation line and the price feed before you open a position.