# What are Power Derivatives?

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Power derivatives are perpetual derivatives indexed to a power of the price of an underlying instrument.

* BTC² is an example of a power derivative that tracks the price of BTC.
* USDT³ is another example of a power derivative that tracks the price of USDT.

Stay tuned for more Power Derivatives with multiple assets and varied powers (from 2 to 32).

Leverage can be a double-edged sword especially when liquidations drive forced selling and negatively impact other holders of the assets that are liquidated. Power derivatives mitigate this risk by entering leveraged positions without long-short liquidations by using a power leverage function.