BRVX Glossary · Contango · Updated September 25, 2026
Contango is a futures market structure in which contracts for later delivery trade at higher prices than nearer contracts or the spot price. It usually reflects the cost of storing, insuring and financing the asset until delivery.
The formula
Contango: Future price > Spot price Carry Storage + Financing − Income from holding
The further out the delivery, the more carrying cost is priced in.
How it works
- Spot Price today
- Near future Slightly higher
- Far future Higher still
Why contango costs long holders
A fund that holds futures must sell the expiring contract and buy the next, more expensive one. In steep contango this roll loses money every month even if spot stays flat — a well-known drag on oil and VIX products.
Contango in perpetuals
Perpetual futures have no expiry and no roll. The equivalent of contango is a perpetual trading above its index, which usually comes with a funding rate where longs pay.
On BRVX
BRVX's oil markets, WTI and Brent, are perpetuals, so there is no contract roll on BRVX. The cost of holding shows up as funding instead — on BRENTOIL/USDT 0.0057% per hour, charged to longs and shorts alike.
Questions about Contango
Is contango bullish or bearish?
Neither; it reflects carrying costs, not a forecast.
What is super contango?
An unusually steep curve, as in oil in 2020 when storage ran short.
Which curve shape mirrors contango?
Backwardation — the curve slopes down instead of up, with deferred months priced under the spot market.
Contango: next steps on BRVX
Contango on SPCX/USDT today: 5x to 80x, fees 0.05% in and 0.05% out, funding 0.0023% long and 0.0023% short per hour.
Read next: Backwardation, Futures trading and Perpetual futures.
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