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Mechanism · DR

Scalar Derivatives

Perpetual swaps or banded options on scalar variables that look like PM topics (pre-IPO valuations, attention scores, FDV). NOT prediction markets · the trader takes a directional position with leverage and liquidation risk.

Also known as: Perps on scalars · Banded options · Event derivatives

In plain terms

Like a perpetual swap or option, but the underlying is a scalar variable that's also a typical PM topic (pre-IPO valuations, attention scores, FDV).

How it works

Perpetual swap with funding rate (Hyperliquid HIP-3 builder-deployed perps) or option with banded payoff (Stryke CLAMM premium-paid options). NOT a prediction market · the trader takes a directional position with leverage and liquidation risk.

How to identify it

Funding rate, leverage, liquidation, or option-style premium-pay payoffs. The underlying is continuous but the product is a derivative.

Common confusion

Most confused category in coverage roundups. Ventuals (scalar perps on pre-IPO valuations), Noise (attention perps), Premarket (FDV options), Thales (binary options legacy) all get bucketed as 'PMs' but mechanically they're derivatives.

Platforms in this category (3)

Key references

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