Reprinted from Jiao Ge:

"$XPL, this pre-market perpetual contract, is actually not a perpetual contract because it is not anchored to an index price, or its index price is its own.

On BN and HYPE, $XPL is essentially a futures contract because its anchoring expectation is that after delivery, its price will converge to be consistent with the spot price. Generally speaking, the price of futures is strongly correlated with the spot price. The premium represents a time-based expectation.

However, in the pre-market with insufficient liquidity and unclear delivery times, the price of XPL can be pulled to any height because there is no anchoring reference before formal delivery. If you want to hedge, in addition to using low leverage, you can also try to hedge as close to the spot time node as possible to significantly reduce risk."