# Financial Insturments **DEX (Decentralized Exchange)**\ A Decentralized Exchange (DEX) is a peer-to-peer marketplace that allows users to trade cryptocurrencies directly with one another without the need for a centralized intermediary, as in traditional exchanges. DEXs typically operate on blockchain networks and use smart contracts to facilitate transactions. Liquidity is often provided by users who deposit their assets into liquidity pools, earning fees or rewards in return. **Perpetual DEX (Perpetual Exchange Platforms)**\ A Perpetual DEX is a decentralized exchange platform that enables users to trade perpetual futures contracts. Unlike traditional futures contracts, perpetual contracts have no expiration date, allowing traders to hold positions indefinitely. These platforms often offer leverage, enabling users to trade with borrowed funds. Liquidity providers on these platforms earn fees by providing liquidity to the market, typically through pools or order books. **Lending/Borrowing Platforms**\ Lending and Borrowing Platforms in the DeFi space allow users to lend their assets to earn interest or borrow assets by providing collateral. These platforms use smart contracts to automate and secure the lending process. Lenders earn interest on their deposited assets, while borrowers can access liquidity without selling their holdings. The collateral is usually over-collateralized to protect against default. **CEX (Centralized Exchange)**\ A Centralized Exchange (CEX) is a traditional exchange where a central authority or company manages the trading platform. Users deposit their assets into the exchange’s custody, and the exchange facilitates trading between buyers and sellers. CEXs are often more user-friendly and offer higher liquidity compared to DEXs, but they also carry higher risks, such as potential hacking or loss of funds due to centralized control. {% hint style="info" %} Fractality does not ensure that all the mentioned instrument types are used at any given time nor limits itself to the mentioned tools in its documentation. {% endhint %} --- # Agent Instructions: 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: ``` GET https://fractality.gitbook.io/fractality/financial-insturments.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.