> 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/more/faq.md).

# FAQ

<details>

<summary>How are leveraged tokens different than perpetual futures?</summary>

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.

</details>

<details>

<summary>Why should I use leveraged tokens instead of perps</summary>

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. <br>

</details>

<details>

<summary>Can leveraged tokens liquidate in extreme cases? </summary>

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.

</details>

<details>

<summary>Why was my ROI lower than I expected it to be? </summary>

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.&#x20;

</details>

<details>

<summary>Can I get a referral link?</summary>

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.

</details>

<details>

<summary>Can I trade leveraged tokens on secondary markets? </summary>

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).

</details>

<details>

<summary>Why are my transactions so slow? </summary>

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/).

</details>


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