You trade the index, not the apartment.

A market on Rent Index does not track a building, a landlord or a lease. It tracks a single published number: the city's rent index, built from asking rents on a documented schedule and released before any market opens on it.

That number is the reference price. Everything else — your entry, your funding, your liquidation level — is measured against it.

Go long if you think a city's rent index rises. Go short if you think it falls. A renter is already short their own rent in real life; a long position is the side that pays off when rent goes up.

A perpetual has no expiry date and nothing to deliver. Instead, a funding rate is exchanged periodically between longs and shorts. When the market trades above the index, longs pay shorts; when it trades below, shorts pay longs. That is what keeps the contract tethered to the published number rather than drifting away from it.

Positions are collateralised. If the index moves against you far enough that your margin no longer covers the position, it is liquidated — closed at market, at a loss. Leverage makes that happen faster, in both directions.

Profit and loss are cash-settled against the index. Nothing physical changes hands. No apartment is bought, sold, rented or transferred, and holding a position gives you no claim on any property, any landlord or any tenancy.

Your rent does not change because you hold a position. What changes is that a rise in the index can be offset by a gain on the market — which is the whole point of a hedge.

Perpetual and leveraged products carry real risk of loss, including full liquidation of your collateral. Index moves can be sharp and are not predictable from past values. An index built from asking rents can also diverge from what you personally pay.

Rent Index is pre-launch software. Nothing on this site is financial or investment advice, and eligibility may be restricted depending on where you live.