We need Smart license for FTD to operate, the different licenses are as follows
* Base License : Comes with appliance which enables Networking, Firewall and AVC (Application Visibility Control)
* Threat : Needs to be purchased enables IPS, Security Intelligence (IP, DNS)
* Malware : Needs to be purchased enables dynamic analysis and sandboxing capability (sending files to cisco threat grid)
* URL Filtering : Needs to be purchased which enables category and reputation-based URL filtering.
The virtual FMC also requires a perpetual license to manage FTD.