Implied Volatility
Implied Volatility is how much a market estimates the likelihood of large movements in an asset. It is implied because it is derived from the trading price of the asset. Power perpetuals have option-like properties, meaning the volatility of the underlying asset plays a crucial role in pricing the derivative.
IV=fร—24ร—365IV = \sqrt{f \times 24 \times 365}
where:
  • f is the hourly funding rate
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