Perpetual Protocol is an Ethereum-based decentralized exchange (DEX) for futures. Traders can use leverage to trade long or short on an increasing variety of assets, including BTC, ETH, DOT, and others. Perpetual Protocol makes use of a virtual automated market maker (vAMM) to offer on-chain liquidity and predictable pricing based on constant product curves. Perpetual Protocol's vAMMs are also meant to be market-neutral and completely collateralized.Perpetual Protocol uses two mechanisms to try to mimic existing exchanges in the trading of perpetual contracts: vAMM and insurance fund. Perpetual Protocol's vAMM, like the AMMs of Uniswap and Balancer, employs mathematical functions to compute token pricing. In order to limit the danger of depletion when the insurance fund is depleted, a smart contract intended to mint additional PERP tokens has been implemented. In order to keep the system from going bankrupt, these new tokens are sold as collateral in the vault.