What are Leveraged Tokens?

Leveraged tokens are derivative products without margin and with leverage, usually more suitable for short-term investment in one-sided markets.

What is Net Value (NAV) ?

Net value refers to the value of leveraged tokens.

Taking BTC3L as an example, if the BTCUSDT price increases by 1%, the net value of BTC3L will increase by 3%.

NAV= Previous Rebalanced NAV*[1±3*(Latest Deal Price of Underlying Asset-Previous Rebalanced Price of Underlying Asset)/Previous Rebalanced Price of Underlying Asset*100%]

Naming Rules

Taking ETH as an example,

ETH3L refers to the token that holds ETHUSDT perpetual contract long position with 3x leverage.
ETH3S refers to the token that holds ETHUSDT perpetual contract short position with 3x leverage.

Which Account can Trade Leveraged Tokens on BYDFi?

Leveraged token trading will be directly conducted through your BYDFi spot account.

Fees for Leveraged Tokens

Trading fee 0.2% ; Management fee 0.03%

For more details, please refer to: Fees for Leveraged Tokens

Will My Tokens be Forcibly Liquidated?

Due to the fact that the price will not drop to zero, it largely avoids the risk of liquidation in leveraged trading.

What is Leveraged Tokens Rebalancing?

The rebalancing mechanism is the process of flexibly adjusting positions to achieve the target leverage. When the actual leverage ratio fails to reach the target leverage range, the rebalancing mechanism will be triggered automatically.

You can refer to: Leveraged Tokens Rebalancing

Does Leveraged Tokens Support Withdrawals?

Currently, BYDFi does not support leveraged tokens withdrawals.