> For the complete documentation index, see [llms.txt](https://docs.afx.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.afx.xyz/basics.md). # Basics - [What Is a Perpetual DEX? Guide to On-Chain Perpetual Futures](https://docs.afx.xyz/basics/what-is-a-perpetual-dex.md): Learn what a perpetual DEX (perp DEX) is and how on-chain perpetual futures trading works. Explore funding rates, leverage, liquidations, benefits, risks, and self-custody. - [What Is a Funding Rate? How It Works in Perpetual Futures](https://docs.afx.xyz/basics/what-is-funding-rate.md): Learn how funding rates work in perpetual futures, who pays them, how they affect holding costs, and why their calculation varies by platform. - [What Is Liquidation in Perpetual Trading? How It Works & How to Avoid It](https://docs.afx.xyz/basics/what-is-liquidation.md): Liquidation is the automatic closure of a leveraged position when your margin falls below the required level. Learn what triggers it, what happens to your funds, and how to avoid it. - [On-Chain Perps vs CEX Perps: Key Differences Explained (2026) ](https://docs.afx.xyz/basics/on-chain-vs-cex-perps.md): On-chain perps keep your funds in your own wallet; CEX perps hand custody to the exchange. Compare custody, fees, transparency, liquidity, and asset access — and see when each makes sense. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.afx.xyz/basics.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.