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.