Cryptocore Trading System Leveraged Tokens are a type of derivative product that give you leveraged exposure to the underlying asset. Like other tokens, leveraged tokens can be traded on the spot market. Each leveraged token represents a basket of perpetual contract positions. The price of a leveraged token moves along with price changes in the perpetual contract market, and the leverage level moves up and down accordingly.
Unlike margin trading, leveraged tokens allow you to gain exposure to leveraged positions without having to put up any collateral, maintain a maintenance margin level, or worry about the risk of liquidation. However, even though you don't have to worry about the risk of liquidation, there are still risks associated with leveraged token positions, such as the effects of price movements in the perpetual contracts market, premiums, and funding rates.
Cryptocore Trading System Leveraged Tokens rebalance on an as-needed basis only. Unlike conventional leveraged tokens, Cryptocore Trading System Leveraged Tokens are not forced to maintain a constant leverage. Hence, Cryptocore Trading System Leveraged Tokens rebalance during extreme market movements only.
The rebalancing of Cryptocore Trading System Leveraged Tokens positions is governed by Cryptocore Trading System proprietary algorithms. Cryptocore Trading System aims to maximize the correlation between the Cryptocore Trading System Leveraged Tokens and the underlying margin-Leveraged position.
To subscribe or redeem, simply go to Cryptocore Trading System Leveraged Tokens page and click “Subscribe” or “Redeem”. 0.1% of subscription or redemption fee will be charged and the funds (in USDT) will be deducted from or credited into your spot wallet.
The daily total subscription or redemption limit of each leveraged token may vary according to prevailing market conditions.
Users may subscribe or redeem each leveraged token up to the daily cap per account at any time except during rebalancing, however, the amount may vary according to prevailing market conditions. Please refer to Cryptocore Trading System Leveraged Tokens Trading Rules for the limit of subscription and redemption.
Users are not allowed to redeem tokens while the fund is rebalancing.