> For the complete documentation index, see [llms.txt](https://docs.bounce.tech/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bounce.tech/basics/how-leveraged-tokens-work/rebalancing.md).

# Rebalancing

The rebalancing mechanism is a key component for maintaining the leverage factor of a leveraged token within a targeted range.

Common perpetual futures exhibit frequent changes in their effective leverage. This occurs because price fluctuations of the underlying asset affect the margin-to-notional ratio. Leveraged tokens counteract this fluctuation by reactively rebalancing the margin-to-notional ratio as soon as an outer bound of the targeted leverage range is reached. This is achieved by directly adjusting the amount of borrowed funds of the underlying perpetual futures contract.

These adjustments are triggered by an off chain monitoring and execution system, which uses [Hyperliquid's API Wallets](https://hyperliquid.gitbook.io/hyperliquid-docs/for-developers/api/nonces-and-api-wallets) feature to modify the position of the leveraged tokens, without exposing functionality to transfer or withdraw funds.

{% hint style="info" %}
The margin-to-notional ratio defines your effective leverage.
{% endhint %}

#### Rebalance thresholds

| Leveraged Token                | Target Leverage | Leverage Range |
| ------------------------------ | --------------- | -------------- |
| BTC 2x Long (BTC2L)            | 2x              | 1.91 - 2.11x   |
| BTC 2x Short (BTC2S)           | 2x              | 1.73 - 2.33x   |
| BTC 3x Long (BTC3L)            | 3x              | 2.74 - 3.35x   |
| BTC 3x Short (BTC3S)           | 3x              | 2.48 - 3.71x   |
| BTC 5x Long (BTC5L)            | 5x              | 4.20 - 6.33x   |
| BTC 5x Short (BTC5S)           | 5x              | 3.80 - 7.00x   |
| ETH 2x Long (ETH2L)            | 2x              | 1.89 - 2.14x   |
| ETH 2x Short (ETH2S)           | 2x              | 1.68 - 2.41x   |
| ETH 3x Long (ETH3L)            | 3x              | 2.69 - 3.44x   |
| ETH 3x Short (ETH3S)           | 3x              | 2.39 - 3.88x   |
| ETH 5x Long (ETH5L)            | 5x              | 4.08 - 6.71x   |
| ETH 5x Short (ETH5S)           | 5x              | 3.62 - 7.57x   |
| SOL 2x Long (SOL2L)            | 2x              | 1.89 - 2.14x   |
| SOL 2x Short (SOL2S)           | 2x              | 1.68 - 2.41x   |
| SOL 3x Long (SOL3L)            | 3x              | 2.69 - 3.44x   |
| SOL 3x Short (SOL3S)           | 3x              | 2.39 - 3.88x   |
| SOL 5x Long (SOL5L)            | 5x              | 4.08 - 6.71x   |
| SOL 5x Short (SOL5S)           | 5x              | 3.62 - 7.57x   |
| HYPE 1x Short (HYPE1S)         | 1x              | 0.89 - 1.13x   |
| HYPE 2x Long (HYPE2L)          | 2x              | 1.89 - 2.14x   |
| HYPE 2x Short (HYPE2S)         | 2x              | 1.68 - 2.41x   |
| HYPE 3x Long (HYPE3L)          | 3x              | 2.69 - 3.44x   |
| HYPE 3x Short (HYPE3S)         | 3x              | 2.39 - 3.88x   |
| HYPE 5x Long (HYPE5L)          | 5x              | 4.08 - 6.71x   |
| HYPE 5x Short (HYPE5S)         | 5x              | 3.62 - 7.57x   |
| DOGE 2x Long (DOGE2L)          | 2x              | 1.88 - 2.15x   |
| DOGE 2x Short (DOGE2S)         | 2x              | 1.65 - 2.45x   |
| DOGE 3x Long (DOGE3L)          | 3x              | 2.67 - 3.48x   |
| DOGE 3x Short (DOGE3S)         | 3x              | 2.35 - 3.97x   |
| DOGE 5x Long (DOGE5L)          | 5x              | 4.02 - 6.93x   |
| DOGE 5x Short (DOGE5S)         | 5x              | 3.53 - 7.89x   |
| NEAR 2x Long (NEAR2L)          | 2x              | 1.89 - 2.14x   |
| NEAR 2x Short (NEAR2S)         | 2x              | 1.68 - 2.41x   |
| NEAR 3x Long (NEAR3L)          | 3x              | 2.69 - 3.44x   |
| NEAR 3x Short (NEAR3S)         | 3x              | 2.39 - 3.88x   |
| NEAR 5x Long (NEAR5L)          | 5x              | 4.08 - 6.71x   |
| NEAR 5x Short (NEAR5S)         | 5x              | 3.62 - 7.57x   |
| ZEC 2x Long (ZEC2L)            | 2x              | 1.88 - 2.15x   |
| ZEC 2x Short (ZEC2S)           | 2x              | 1.65 - 2.45x   |
| ZEC 3x Long (ZEC3L)            | 3x              | 2.67 - 3.48x   |
| ZEC 3x Short (ZEC3S)           | 3x              | 2.35 - 3.97x   |
| ZEC 5x Long (ZEC5L)            | 5x              | 4.02 - 6.93x   |
| ZEC 5x Short (ZEC5S)           | 5x              | 3.53 - 7.89x   |
| FARTCOIN 2x Long (FARTCOIN2L)  | 2x              | 1.88 - 2.15x   |
| FARTCOIN 2x Short (FARTCOIN2S) | 2x              | 1.65 - 2.45x   |
| FARTCOIN 3x Long (FARTCOIN3L)  | 3x              | 2.67 - 3.48x   |
| FARTCOIN 3x Short (FARTCOIN3S) | 3x              | 2.35 - 3.97x   |
| FARTCOIN 5x Long (FARTCOIN5L)  | 5x              | 4.02 - 6.93x   |
| FARTCOIN 5x Short (FARTCOIN5S) | 5x              | 3.53 - 7.89x   |
| kPEPE 2x Long (kPEPE2L)        | 2x              | 1.88 - 2.15x   |
| kPEPE 2x Short (kPEPE2S)       | 2x              | 1.65 - 2.45x   |
| kPEPE 3x Long (kPEPE3L)        | 3x              | 2.67 - 3.48x   |
| kPEPE 3x Short (kPEPE3S)       | 3x              | 2.35 - 3.97x   |
| kPEPE 5x Long (kPEPE5L)        | 5x              | 4.02 - 6.93x   |
| kPEPE 5x Short (kPEPE5S)       | 5x              | 3.53 - 7.89x   |
| LIT 2x Long (LIT2L)            | 2x              | 1.89 - 2.14x   |
| LIT 2x Short (LIT2S)           | 2x              | 1.68 - 2.41x   |
| LIT 3x Long (LIT3L)            | 3x              | 2.69 - 3.44x   |
| LIT 3x Short (LIT3S)           | 3x              | 2.39 - 3.88x   |
| GOLD 2x Long (GOLD2L)          | 2x              | 1.94 - 2.06x   |
| GOLD 2x Short (GOLD2S)         | 2x              | 1.83 - 2.19x   |
| GOLD 3x Long (GOLD3L)          | 3x              | 2.83 - 3.20x   |
| GOLD 3x Short (GOLD3S)         | 3x              | 2.67 - 3.40x   |
| GOLD 5x Long (GOLD5L)          | 5x              | 4.48 - 5.71x   |
| GOLD 5x Short (GOLD5S)         | 5x              | 4.22 - 6.06x   |
| SILVER 2x Long (SILVER2L)      | 2x              | 1.94 - 2.06x   |
| SILVER 2x Short (SILVER2S)     | 2x              | 1.83 - 2.19x   |
| SILVER 3x Long (SILVER3L)      | 3x              | 2.83 - 3.20x   |
| SILVER 3x Short (SILVER3S)     | 3x              | 2.67 - 3.40x   |
| SILVER 5x Long (SILVER5L)      | 5x              | 4.48 - 5.71x   |
| SILVER 5x Short (SILVER5S)     | 5x              | 4.22 - 6.06x   |
| CL (Crude Oil) 2x Long (CL2L)  | 2x              | 1.94 - 2.06x   |
| CL (Crude Oil) 2x Short (CL2S) | 2x              | 1.83 - 2.19x   |
| CL (Crude Oil) 3x Long (CL3L)  | 3x              | 2.83 - 3.20x   |
| CL (Crude Oil) 3x Short (CL3S) | 3x              | 2.67 - 3.40x   |
| CL (Crude Oil) 5x Long (CL5L)  | 5x              | 4.48 - 5.71x   |
| CL (Crude Oil) 5x Short (CL5S) | 5x              | 4.22 - 6.06x   |
| BRENTOIL 2x Long (BRENTOIL2L)  | 2x              | 1.94 - 2.06x   |
| BRENTOIL 2x Short (BRENTOIL2S) | 2x              | 1.83 - 2.19x   |
| BRENTOIL 3x Long (BRENTOIL3L)  | 3x              | 2.83 - 3.20x   |
| BRENTOIL 3x Short (BRENTOIL3S) | 3x              | 2.67 - 3.40x   |
| BRENTOIL 5x Long (BRENTOIL5L)  | 5x              | 4.48 - 5.71x   |
| BRENTOIL 5x Short (BRENTOIL5S) | 5x              | 4.22 - 6.06x   |
| SP500 2x Long (SP5002L)        | 2x              | 1.94 - 2.06x   |
| SP500 2x Short (SP5002S)       | 2x              | 1.83 - 2.19x   |
| SP500 3x Long (SP5003L)        | 3x              | 2.83 - 3.20x   |
| SP500 3x Short (SP5003S)       | 3x              | 2.67 - 3.40x   |
| SP500 5x Long (SP5005L)        | 5x              | 4.48 - 5.71x   |
| SP500 5x Short (SP5005S)       | 5x              | 4.22 - 6.06x   |
| XYZ100 2x Long (XYZ1002L)      | 2x              | 1.94 - 2.06x   |
| XYZ100 2x Short (XYZ1002S)     | 2x              | 1.83 - 2.19x   |
| XYZ100 3x Long (XYZ1003L)      | 3x              | 2.83 - 3.20x   |
| XYZ100 3x Short (XYZ1003S)     | 3x              | 2.67 - 3.40x   |
| XYZ100 5x Long (XYZ1005L)      | 5x              | 4.48 - 5.71x   |
| XYZ100 5x Short (XYZ1005S)     | 5x              | 4.22 - 6.06x   |
| NVDA 2x Long (NVDA2L)          | 2x              | 1.91 - 2.11x   |
| NVDA 2x Short (NVDA2S)         | 2x              | 1.73 - 2.33x   |
| NVDA 3x Long (NVDA3L)          | 3x              | 2.74 - 3.35x   |
| NVDA 3x Short (NVDA3S)         | 3x              | 2.48 - 3.71x   |
| NVDA 5x Long (NVDA5L)          | 5x              | 4.20 - 6.33x   |
| NVDA 5x Short (NVDA5S)         | 5x              | 3.80 - 7.00x   |
| TSLA 2x Long (TSLA2L)          | 2x              | 1.88 - 2.15x   |
| TSLA 2x Short (TSLA2S)         | 2x              | 1.65 - 2.45x   |
| TSLA 3x Long (TSLA3L)          | 3x              | 2.67 - 3.48x   |
| TSLA 3x Short (TSLA3S)         | 3x              | 2.35 - 3.97x   |
| TSLA 5x Long (TSLA5L)          | 5x              | 4.02 - 6.93x   |
| TSLA 5x Short (TSLA5S)         | 5x              | 3.53 - 7.89x   |
| MU 2x Long (MU2L)              | 2x              | 1.88 - 2.15x   |
| MU 2x Short (MU2S)             | 2x              | 1.65 - 2.45x   |
| MU 3x Long (MU3L)              | 3x              | 2.67 - 3.48x   |
| MU 3x Short (MU3S)             | 3x              | 2.35 - 3.97x   |
| MU 5x Long (MU5L)              | 5x              | 4.02 - 6.93x   |
| MU 5x Short (MU5S)             | 5x              | 3.53 - 7.89x   |
| CBRS 2x Long (CBRS2L)          | 2x              | 1.89 - 2.14x   |
| CBRS 2x Short (CBRS2S)         | 2x              | 1.68 - 2.41x   |
| CBRS 3x Long (CBRS3L)          | 3x              | 2.69 - 3.44x   |
| CBRS 3x Short (CBRS3S)         | 3x              | 2.39 - 3.88x   |
| CBRS 5x Long (CBRS5L)          | 5x              | 4.08 - 6.71x   |
| CBRS 5x Short (CBRS5S)         | 5x              | 3.62 - 7.57x   |
| BB 2x Long (BB2L)              | 2x              | 1.89 - 2.14x   |
| BB 2x Short (BB2S)             | 2x              | 1.68 - 2.41x   |
| BB 3x Long (BB3L)              | 3x              | 2.69 - 3.44x   |
| BB 3x Short (BB3S)             | 3x              | 2.39 - 3.88x   |
| BB 5x Long (BB5L)              | 5x              | 4.08 - 6.71x   |
| BB 5x Short (BB5S)             | 5x              | 3.62 - 7.57x   |
| SPCX 2x Long (SPCX2L)          | 2x              | 1.89 - 2.14x   |
| SPCX 2x Short (SPCX2S)         | 2x              | 1.68 - 2.41x   |
| SPCX 3x Long (SPCX3L)          | 3x              | 2.69 - 3.44x   |
| SPCX 3x Short (SPCX3S)         | 3x              | 2.39 - 3.88x   |
| SPCX 5x Long (SPCX5L)          | 5x              | 4.08 - 6.71x   |
| SPCX 5x Short (SPCX5S)         | 5x              | 3.62 - 7.57x   |


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