# About Bounce.Tech Leveraged tokens for all of finance Bounce.Tech is a permissionless non-custodial leveraged token platform built on Hyperliquid. It enables users to trade leveraged tokens (LTs) for over 200 assets with up to 10x leverage. All LTs are backed by Hyperliquid perpetual futures contracts. ### Official Links | Name | Description | | -------------------------------------------------------- | -------------------------------------------- | | [App](https://bounce.tech/) | Bounce.Tech website and app | | [GitHub](https://github.com/bounce-tech/) | Official Bounce.Tech GitHub | | [X (formerly Twitter)](https://x.com/BounceTech) | Stay up to date with the latest developments | | [Discord](https://discord.com/invite/xvxMGzdrRU) | Join the Bounce.Tech community | | [Blog](https://bounce.tech/blog) | Official Bounce.Tech blog | | [Terms of Service](https://bounce.tech/terms-of-service) | Bounce.Tech Terms of Service | | [Privacy Policy](https://bounce.tech/privacy-policy) | Bounce.Tech Privacy Policy | # Leveraged Tokens ## What are leveraged tokens? Leveraged tokens are ERC-20 tokens that offer leveraged exposure to an underlying asset while maintaining the leverage factor within a targeted range. Bounce leveraged tokens are built using Hyperliquid precompiles ## Key characteristics ### **Constant leverage** What distinguishes leveraged tokens from conventional perpetual futures is the reactive rebalancing of the margin-to-notional ratio, otherwise known as the leverage factor. As opposed to a fixed amount of borrowed funds from the outset, the dynamic management of the leverage factor maintains constant leveraged exposure throughout their lifecycle. As a result, leveraged tokens do not require any margin management by the holder. ### **Composability** Leveraged tokens implement the ERC-20 token standard. This means these tokens will appear in your wallet, can be transferred at your discretion, and seamlessly integrate into the broader DeFi ecosystem. ### **Deep liquidity** All leveraged tokens are tokenized representations of perpetual futures contracts accessed through Hyperliquid pre-compiles. By drawing from the deep liquidity and benefiting from the cost-effective fees provided by Hyperliquid perpetual markets, these tokens offer a powerful and efficient way to access leveraged positions. # How Leveraged Tokens Work The following sections outline the fundamental mechanisms that underpin the defining characteristics of Bounce leveraged tokens. # Hyperliquid Hyperliquid is a performant layer 1 blockchain (L1) designed to house a fully onchain open financial system. To accomplish this, Hyperliquid splits state execution into two broad components: * **HyperCore:** HyperCore includes fully onchain perpetual futures and spot order books. Every order, cancel, trade, and liquidation happens transparently with one-block finality inherited from HyperBFT. HyperCore currently supports 200k orders / second, with throughput constantly improving as the node software is further optimized. * **HyperEVM:** The HyperEVM brings the familiar general-purpose smart contract platform pioneered by Ethereum to the Hyperliquid blockchain. With the HyperEVM, the performant liquidity and financial primitives of HyperCore are available as permissionless building blocks for all users and builders. Bounce utilizes both components to enable leveraged tokens for the entire Hyperliquid stack. Through Bounce, all markets available on HyperCore can be represented by composable ERC-20 tokens. ### Precompiles Precompiles are special built-in contracts that are not written in Solidity but implemented natively. Hyperliquid uses read precompiles and write precompiles to let HyperEVM contracts interact with HyperCore state and execute Core Actions. Bounce utilizes precompiles to manage state between HyperCore and HyperEVM ### Leveraged tokens Bounce creates leveraged tokens by consolidating them based on asset, direction, and leverage (e.g., 10x long ETH) and backing them with a corresponding single perpetual futures contract on Hyperliquid. This position is continuously adjusted to account for price movements that trigger a rebalancing event or user interaction such as buying and selling. Integrating the Hyperliquid stack allows Bounce users to gain leveraged exposure to the underlying asset without holding the actual asset. A user's margin is denominated in USDC and the counterparty to all leveraged tokens are market makers (such as the HLP vault). # 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 | # ERC-20 compliance Bounce leveraged tokens are designed to be fully compliant with the ERC-20 token standard. Unlike conventional perpetual futures, these tokens are not confined to their native platform, which allows for greater flexibility in their utilization. Leveraged tokens will be readily visible in your wallet, can be transferred at your discretion, are tradable on secondary marketplaces, and can be effortlessly integrated into the broader DeFi ecosystem. # Effects of rebalancing Unlike conventional perpetual futures, leveraged tokens rebalance their leverage factor which leads to a number of notable implications. ## Directional de-/leveraging Leveraged tokens can offer amplified returns and loss mitigation for one-directional price movements. In conventional perpetual futures contracts, e.g., a 3x long position, the leverage decreases as the underlying asset appreciates, and conversely, it increases as the asset depreciates. Rebalancing counteracts this effect. After an underlying asset appreciation, leveraged tokens can exhibit relatively higher leverage than perpetual futures, thereby enhancing the Return on Investment (ROI). Conversely, if the underlying asset depreciates, rebalancing the leverage alleviates the impact of further asset depreciation - a characteristic distinct from perpetual futures. The following simplified calculation illustrates how rebalancing works during one-directional movements: {% hint style="info" %} Note that this is not Bounce-specific but merely illustrates a potential effect of rebalancing. {% endhint %} *PF = Perpetual future* *LT = Leveraged token* *UA = Underlying asset* | Form of leverage | T1 | T2 | ROI (T2) | | ---------------- | ------- | -------------------- | -------- | | 2x Long PF | UA +10% | UA +10% | 42% | | 2x Long LT | UA +10% | Rebalancing, UA +10% | 44% | ## Volatility decay In contrast to the amplified returns and loss mitigation seen with one-directional movements, volatility introduces an opposing effect, leading to volatility decay. For instance, following the rebalancing of a long position due to a depreciation in the underlying asset, the leverage factor will be lower in comparison to a position that did not undergo rebalancing. Consequently, a subsequent asset appreciation would lead to a comparatively lower increase in ROI. The following simplified calculation illustrates the impact of rebalancing due to volatility: {% hint style="info" %} Note that this is not Bounce-specific but merely illustrates a potential effect of rebalancing. {% endhint %} | Form of leverage | T1 | T2 | ROI (T2) | | ---------------- | ------- | -------------------- | -------- | | 2x Long PF | UA -10% | UA +10% | -2% | | 2x Long LT | UA -10% | Rebalancing, UA +10% | -4% | # Standby mode Due to minimum size thresholds enforced by Hyperliquid, when the TVL of a specific leveraged token is below $250 it enters `Standby mode`. In standby mode users can still buy and sell leveraged tokens. However all funds will be held idly in the HyperEVM smart contract and have no exposure to the underlying asset. Meaning, the value of minted tokens will remain static until the enforced TVL requirements are met. As soon as the TVL of a leveraged token goes above $300, it will be activated again with no additional action required by the user. {% hint style="info" %} Standby mode is very uncommon and will most likely (if ever) only impact low volume long tail assets. {% endhint %} # Fees Bounce charges streaming and closing fees on all leveraged tokens. All fees that are charged by Hyperliquid (funding, rebalancing) are realized directly by the underlying perpetual contracts. ***Streaming fee: 2.0%***\ Annualized fee that is continuously charged on the notional value of a position. ***Closing fee: 0.3%***\ The closing fee is charged on the amount of USDC closed multiplied by the target leverage of the position. ### Rebates Users can unlock rebates by using a referral link. Rebates are calculated as a percentage of the closing fee and can be claimed on the [referrals page](https://bounce.tech/referrals). \ \ Learn more about the Bounce referral program [here](/community/referral-program). # Guides To get started, log in at [bounce.tech/trade](https://bounce.tech/trade) with email, Google, or a crypto wallet such as Rabby or MetaMask. After logging in, deposit USDC to start trading. Bounce supports deposits via crypto transfer, Apple Pay, Google Pay, and debit card. For crypto wallet users, you can trade directly from your HyperEVM USDC balance. {% content-ref url="/pages/aGgkve6iBvN7ISdxB20l" %} [Buying](/basics/guides/buying) {% endcontent-ref %} {% content-ref url="/pages/lCm7NxU4kmILoOuloe7z" %} [Selling](/basics/guides/selling) {% endcontent-ref %} # Buying To buy a leveraged token, go to [bounce.tech/trade](https://bounce.tech/trade). This opens the Trade page, where you pick an asset, Direction, Leverage, and a USDC Buy amount, then click Place order. On the Bounce UI, the size you enter is denominated in USDC, not in leveraged token units. **Trade details** converts that USDC into the token you will receive (for example `HYPE5L`). #### 1. Log in Click **Log in** in the header or on the buy panel. Users can log in with email, Google, or a crypto wallet such as Rabby or MetaMask. After logging in, deposit USDC to start trading. #### **2. Select the asset you want to trade** Click the market selector above the chart (for example HYPE-USDC). Search with ⌘K, or filter by Stocks, Commodities, Crypto, and ETFs.

You can also switch the chart between Underlying Chart (the Hyperliquid perp) and Leveraged Token Chart.

#### 3. Select Direction, Leverage, and Buy amount In the right-hand panel: 1. Set Direction to Long or Short. 2. Set Leverage (2x / 3x / 5x; some shorts also offer 1x). 3. Enter USDC buy amount. After entering an amount, expand **Trade details** to review: * You receive: Estimated leveraged tokens received * Min. received: The slippage protected minimum you will receive * Position: Asset, leverage, direction, and token symbol * Fees: 0% for buys, 0.3% for sells {% hint style="info" %} Trades on Bounce have a minimum order size of $15 USDC. If you are below the minimum size threshold, a panel will open showing insufficient amounts. If this happens, increase your order size to > $15 {% endhint %} #### 4. Place order For users that log in via Google or email, no further steps are required after clicking Place order. For crypto wallet users, orders must be signed by your wallet as standard. **Crypto wallet users only**\ If it's your first time placing an order, you will be prompted to sign two transactions. One for approval and one for executing the order. Approval transactions only occur the first time you buy a leveraged token, future orders will only require one transaction. #### 5. View position After placing an order, view your position on the [Portfolio page](https://bounce.tech/portfolio) or directly on the trade page via the Positions table below the chart. # Selling To close a leveraged token position head to the [Portfolio page](https://bounce.tech/portfolio). Here you can view your PnL, trade history, and manage your open positions. If preferred, users may also manage their open positions from the positions table on the Trade page. #### 1. Close position Find the position you want to close then click Close position. From there, you can view position details and place an order to close your position. #### 2. Confirm details
Enter the amount you want to close then conform order details: * Asset to Close: The leveraged token position (e.g, HYPE5L) * Close Amount: The amount of leveraged tokens to sell * You receive: Estimated USDC received * Min. received: The slippage protected minimum you will receive * uPnL: Unrealized PnL, including the closing fee #### 3. Place order After confirming details, click Close position. Close transactions typically fill in a second or less. Larger close transactions can sometimes take up 15 seconds depending on order size. #### 4. View completed trade You will receive a confirmation popup once your order is filled. The confirmation includes your PnL sharecard as well as: * Closed from: The position you sold * Amount received: The USDC you received * Transaction hash: View the close transaction on HyperEVM From here you can Share to X, copy or download your PnL sharecard, or close the confirmation to return to [Trade](https://bounce.tech/trade) or Portfolio. # Referral Program The Bounce referral program rewards both referrers and referred users. To check your referral status and claim rewards, go to the referrals page: #### How do I generate a referral code? Users become eligible to create a referral code after reaching $100,000 in total notional trading volume on Bounce. Check your eligibility [here](https://bounce.tech/referrals). #### What will I earn for referring users? You will earn 10% of the redemption fees generated by users who trade through your referral code. #### How do I use a referral code? You can use a referral code by connecting to Bounce via a referral link. Once a referral code is applied, you will receive a 4% rebate on redemption fees. #### How do I become an affiliate? The Bounce affiliate program is invite-only and is currently available to: * Users with $1,000,000+ in total trading volume * Approved partners and community members Affiliates may receive enhanced referral benefits and additional partnership opportunities. To apply for the affiliate program, contact @maxbphi on [Telegram](https://t.me/maxbphi). # Contract Addresses and ABIs The easiest way to find the latest Bounce Tech Contract Addresses and ABIs is in the repo of our npm package: https\://github.com/bounce-tech/bounce-npm # Integration Guide Below is a high level guide on how to integrate with the Bounce Tech Protocol. It covers useful tools and frameworks, and some general details on primary functions. #### Tools & Links * [Bounce Tech npm Package](https://github.com/bounce-tech/bounce-npm) (useful for TypeScript based integrations) * [Bounce Tech Data API](https://api.bounce.tech/docs) (useful for querying Bounce Tech data and PnL) * [Bounce Tech WebSocket API](https://ws.bounce.tech/docs) (useful for subscribing to the live price feed) * [Bounce Tech Smart Contracts](https://github.com/bounce-tech/bounce-smart-contracts) (useful for understanding code in more detail) #### Useful Contract Views * `factory.lts()` query the contract addresses for all Leveraged Tokens * `leveragedToken.targetAsset()` the target asset of the leveraged token, e.g. BTC, HYPE * `leveragedToken.targetLeverage()` the taget leverage of the leveraged token, e.g. 2, 5 * `leveragedToken.isLong()` the direction of the leveraged token, `true` for long and `false` for short * `leveragedToken.exchangeRate()` the exchange rate from one leveraged token to one USDC. So `usdcValue = ltAmount * exchangeRate` . Essentially a live oracle that updates every block for the value of a leveraged token. * `leveragedToken.totalAssets()` the total amount of USDC in the leveraged token, including USDC used as margin on Hyperliquid and idle USDC in the leveraged token. Essentially the TVL of the leveraged token. * `leveragedToken.baseAssetBalance()` the amount of idle USDC in the leveraged token. Essentially `usdc.balanceOf(leveragedTokenAddress)`. #### Mint and Redeem Flow The primary function for minting is `mint(address to_, uint256 baseAmount_, uint256 minOut_)`. `to` is what address you want the leveraged tokens sent to, usually this will be yourself. `baseAmount` is the amount of USDC you want to mint with. And `minOut` is the minimum amount of leveraged tokens you want to receive (to protect against slippage). This function is on the Leveraged Token contract, so you will first need to identify what leveraged token you want to mint. And before minting you will need to approve the Leveraged Token to spend your USDC. There are two redeem flows. The atomic redeem flow, and the async redeem flow. The atomic redeem flow can be used when the amount of USDC you are redeeming is less than or equal to the amount of available USDC in the Leveraged Token contract. To get the amount of USDC in the contract you can call `usdc.balanceOf(leveragedTokenAddress)` or `leveragedToken.baseAssetBalance()` (which is just a wrapper for the same thing). To atomic redeem, you can call `redeem(address to_, uint256 ltAmount_, uint256 minBaseAmount_)`. This will return your USDC to you within the transaction and is fully atomic. For async redemptions, you can call `prepareRedeem(uint256 ltAmount_)` which will take your Leveraged Token balance atomically. But you will be sent your USDC around 10 seconds later. If this complicates your integration, you can instead opt to always use the atomic redeem, and can break redeems down into smaller steps. Each time an atomic redeem is done, the idle balance of funds in the Leveraged Token contract is replenished, so you can do another atomic redemption shortly after. #### Leveraged Token Helper The Leveraged Token Helper is a contract that sits outside of the core protocol. It exposes some useful views that allow for querying data about the leveraged tokens more conveniently and quickly. This may be useful for your integration to find the available leveraged tokens and to assist with basic accounting logic. Using the Leveraged Token Helper views, combined with the Mint and Redeem flow above, should provide the core toolkit for most integrations. {% hint style="info" %} The Leveraged Token Helper is only lightly audited, and considered outside of the scope of the core protocol. Use it at your own risk and verify functionality is what you expect. {% endhint %} # Custody Throughout the whole flow of the leveraged tokens, the custody of funds always remains with the minting and redeeming user. When a user mints, they receive an ERC20 which represents fractional ownership of the USDC held within the leveraged token, and associated positions on Hyperliquid. The funds held within the leveraged token are fully owned by the leveraged token, and at no point does custody of the funds leave the smart contract. When funds are bridged to HyperCore, they are still owned and custodied by the Leveraged Token Smart Contract, and are held in the HyperCore balance of the smart contract. Orchestration of rebalances and bridging are done using [API Wallets](https://hyperliquid.gitbook.io/hyperliquid-docs/for-developers/api/nonces-and-api-wallets) which allow the automation layer to bridge, open positions, modify positions, and close positions on behalf of the leveraged tokens. However, API wallets do not allow for the withdrawal or transfer of funds outside of the leveraged token. This architecture enables a trustless environment where permissions are enforced to be limited in scope to only what is needed to enable leveraged token functionality. # Risks & Security Bounce has been designed and built with security in mind. The core team continues to test both new and existing components of the protocol on an ongoing basis as the protocol continues to evolve. However, please keep in mind that DeFi comes with its own inherent risks and that Bounce integrates with various other protocols. While the core team tries to provide sufficient documentation on all Bounce components, please reach out on [Discord](https://discord.com/invite/T8DvHhCrGV) if there are any questions regarding risks on Bounce. ### Audits For details on the audits Bounce Tech has conducted, please view the audits page on the Bounce Tech website: ### Report Bugs or Vulnerabilities If you have found a potentially bug or vulnerability, please reach out to us on Telegram at `chase_manning` or `chucklingchuck` . And if you can't get in touch there, try us on [Discord](https://discord.com/invite/T8DvHhCrGV). # Bug Bounty Bounce Tech has a bug bounty program available for their production smart contracts. See below for details on the program. ### Severity and Rewards Severity classifications will be done via the [Immunefi Vulnerability Severity Classification System v2.3](https://immunefi.com/immunefi-vulnerability-severity-classification-system-v2-3/). | Severity | Bounty | | -------- | ------------------------------------------------- | | Critical | 10% of funds at risk, up to $100,000, min $15,000 | | High | Range $5,000 to $15,000 | | Medium | Flat $1,500 | | Low | Flat $500 | ### Scope The bug bounty program does not cover the website, API or other supporting services. The bug bounty program only covers smart contracts that are considered part of the core protocol, so excludes any Helper Contracts. You can find the [smart contract codebase here](https://github.com/bounce-tech/bounce-smart-contracts). ### Rules and Requirements * Critical and High reports must include a runnable PoC against a local fork of Hyperliquid. * Any issues that have been raised in a previous audit report are not eligible for bounties. You can see [previous reports here](https://bounce.tech/audits). * Duplicates after the first valid report are not eligible. * Chained bugs are evaluated by the highest-severity impact. * Reporters who exploited the bug themselves before reporting are ineligible and may trigger legal action. * Payouts are conditional on completion of KYC and sanctions screening to the satisfaction of the Bounce Foundation. The Foundation reserves the right to withhold payment where screening cannot be completed or where payment would breach applicable sanctions or AML laws. * Current or former Bounce team members, paid auditors of the affected code, and their immediate family are not eligible. * Bounties will be paid in Fiat, within 14 days of fix deployment, or within 30 days of report acceptance for criticals where fix takes longer. * No bug submission is eligible if it has already been included in a historic paid bug bounty (see below) ### Submissions All bug bounty submissions can be made by messaging `chase_9128` on Telegram. ### Paid Bug Bounties #### 28th April 2026: perpUsdc clamps negative values (Low) The `perpUsdc` functions in the Hyperliquid Handler clamp negative values returned by Hyperliquid. If a perp position on hyperliquid was to be negative due to system failure, this could result in Bounce Tech failing to account for these negative values in the exchange rate. Remediation is to properly account for negative values and propagate this through to exchange rate for accounting. #### 29th April 2026: executeRedemptionFee not charged when baseAmount is zero (Low) When `baseAmount` is zero, in `_redemptionFee`, there is an early 0 return. However, if it is a prepare redeem, gas costs are still incurred for processing a zero amount, and so should still charge `executeRedemptionFee` . Remediation is charging `executeRedemptionFee` in this case. Note that this also solves a potentially undesirable behaviour where users may not want to receive a zero amount for their prepare redeem, and would rather keep their leveraged tokens in this case. # Brand Assets #### Bounce Logo {% tabs %} {% tab title="Token Icon" %}
{% endtab %} {% tab title="Icon" %}
{% endtab %} {% tab title="Logo" %}
{% endtab %} {% tab title="Wordmark" %}
{% endtab %} {% endtabs %} #### Leveraged Token Icons The leveraged token icons are hosted at a dynamic url, with pattern \`. For example, HYPE5L can be found at . We will keep this up to date as new Leveraged Tokens are added so you can use this for your webapp integration as the source of the leveraged token icons. # FAQ
How are leveraged tokens different than perpetual futures? The primary differentiator to perpetual futures is that leveraged tokens maintain their leverage factor within a target range. They achieve this by reactively rebalancing the amount of borrowed funds.
Why should I use leveraged tokens instead of perps In most situations, LTs and perps have similar performance. However, unlike perps, leveraged tokens do not required margin management, are non-liquidating, and maintain a constant leverage factor. For many users, LTs provide a more comfortable way to trade with leverage.
Can leveraged tokens liquidate in extreme cases? Yes, in theory, leveraged tokens can face liquidation if the automation layer cannot rebalance a position quickly enough in response to sudden extreme volatility. In the case of a liquidation, the value of a leveraged token would become zero, and a new leveraged token contract would be deployed.
Why was my ROI lower than I expected it to be? Users may encounter a lower than expected return on investment (ROI) due to factors such as time decay (holding LTs for longer periods than normal), volatility decay, and abnormally high funding rates.
Can I get a referral link? Referral links are distributed to a limited number of contributors and community members. If you're interested in becoming a referrer please refer to the referral program section of the docs.
Can I trade leveraged tokens on secondary markets? Yes, leveraged tokens, being built on the ERC-20 token standard, are tradable on secondary marketplaces. However, this is dependent upon sufficient liquidity in the respective Decentralized Exchange (DEX).
Why are my transactions so slow? It is likely that your wallet is on `Big Block Mode`. Ensure that your HyperEVM wallet is set to `Small Block Mode` for fast transactions. You can change modes [here](https://hyperevm-block-toggle.vercel.app/).