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An ultimate guide to Leveraged Token [Bull Token]

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  • Leveraged Tokens enables you to gain exposure to leveraged trading positions without maintaining margin, collateral, management, and risk.
  • They offer fixed, and variable leverages. Additionally, the rebalancing mechanisms help in maintaining the target leverage range.
  • Leveraged Tokens are not designed for holding, buy and sell them quickly, don’t hold them.
  • Pionex offers leveraged tokens with an optimized rebalancing mechanism. They have designed specific rules to trigger rebalancing.
  • Binance provides Binance Leveraged Tokens (BLVT) that have variable leverage between 1.25x and 4x.
  • BLVT leverage is not publicly visible, and they do not rebalance themselves periodically. These tokens are listed only on Binance.
  • FTX was the first exchange to introduce leveraged tokens (Bull Token and Bear Token). They offer leverage up to 3X. They have defined clear rules to trigger rebalancing and calculate the price of the token.

1. Pionex

Leverage = current price * the leverage of the order/ the price of the order + the leverage of the order *(current price - the price of the order)
Pionex Leveraged Tokens


  1. 3x Long Pionex Leveraged Tokens: The leverage can fluctuate from 2.2X-4.8X, but if it exceeds this, it will be rebalanced to 3X.
  2. 3x Short Pionex Leveraged Tokens: The leverage can fluctuate from 1.8X-4.8X, but if it exceeds this, it will be rebalanced to 3X.
  3. 1x Short Pionex Leveraged Tokens: The leverage can fluctuate from 0.75X-1.5X, but if it exceeds this, it will be rebalanced to 1X.

Reverse Split on Pionex Leveraged Tokens

2. Binance

Features of Binance Leveraged Tokens (BLVT)

  • You cannot withdraw BLVT from your wallet. In other words, you can only store BLVT’s in your Binance account.
  • They provide variable leverage. The exact target is not publicly visible to avoid traders to anticipate rebalancing events. The tokens do not balance periodically but only when the market conditions are necessary.
  • Binance tries to maintain leverage between 1.25x and 1.5x.
  • The Net Asset Value ( NAV) is the value of BLVT in USDT.
  • They focus on maximizing the returns when the price goes up and minimizing liquidation risks when the price goes down.
  • The redemption and subscription limit of each BLVT is different.
  • You can check your subscription and redemption history.
Binance Leveraged Tokens (BLVT)

Binance Redemption Fees

  • Sell BLVT in the spot market.
  • Redeem the value of your BLVT’s in USDT. However, you have to pay a redemption fee of 0.1%. Redemption is expensive in most cases and is used in extraordinary situations.

3. FTX

FTX Leveraged Tokens
  1. Spot Market
  2. Exchange coins
  3. Creation or Redemption of a Leveraged Token. This method is not recommended because you don’t know what price you will receive unless you have completed the process.
  1. Desired position (DP): [Target Leverage] * NAV / [underlying mark price]
  2. Current Position (CP): current holdings per token of the underlying
  3. Rebalance size: (DP — CP) * [LT tokens outstanding]

Leveraged Tokens: Risk and Benefits


  1. They are high-risk products. You can be at a loss if you don’t have enough knowledge about Leveraged Tokens before investing in them. It is not advised for beginner traders.
  2. Leveraged Tokens are rebalanced daily and hence are not advised for long-term holding.
  3. The transparency offered by leveraged tokens depends on the exchange you are using.


  1. They offer leveraged exposure without managing margin trade, liquidation, collateral, and funding rates.
  2. Allow you to take advantage of market volatility.
  3. They automatically reinvest your profits and sell some of them if the market is down to avoid liquidation risk.

Leveraged Tokens: Conclusion

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