Binance Leveraged Tokens
Enjoy increased leverage without risk of liquidation
- 1. What are Binance Leveraged Tokens?
Binance Leveraged Tokens are tradable assets in the Binance spot market that give you leveraged exposure to the underlying asset. Each leveraged token represents a basket of perpetual contract positions. The price of the tokens tracks the change in notional amount of the perpetual contract positions in the basket and changes in the multiples of leverage level.
Unlike leveraged trading, you could get into a leveraged position without the need of having any collaterals, maintaining margin maintenance and worrying about the liquidation risk.
- 2. What is the leverage level of Binance Leveraged Tokens?Unlike conventional leveraged token, Binance Leveraged Tokens do not maintain a constant leverage. Instead, Binance Leveraged Tokens maintain a constant target leverage range between 1.5x and 3x. This would maximize profitability on upswings, and minimize losses to avoid liquidation.
- 3. What is the Underlying Asset?The ticker name indicates the underlying assets. For example, the underlying asset of BTCUP is the BTC perpetual contract in Binance Futures.
- 4. Do Binance Leveraged Tokens rebalance?
Binance Leveraged Tokens rebalance on an as-needed basis only. Unlike conventional leveraged tokens, Binance Leveraged Tokens are not forced to maintain a constant leverage. Hence, Binance Leveraged Tokens rebalance during extreme market movements only.
The rebalancing of Binance Leveraged Tokens positions is governed by Binance proprietary algorithms. Binance aims to maximize the correlation between the Binance Leveraged Tokens and the underlying margin-Leveraged position.
- 5. How do I get started in Binance Leveraged Tokens?You must accept and agree to the terms and conditions in Binance Leveraged Token Risk Disclosure before getting started in Binance Leveraged Tokens.
- 6. Where can I trade Binance Leveraged Tokens?You can trade in the Binance spot advanced trading interface. Currently, Binance is the only exchange that creates and lists Binance Leveraged Tokens. Should we list the tokens on other exchanges, an official announcement will be made in advance.
- 7. I couldn’t find the trading pair of leveraged tokens I want to trade in the Binance spot market. Will Binance add them?You can find a list of leveraged token trading pairs available to trade on Binance here. Should we add more trading pairs for trading, an official announcement will be made in advance.
- 8. What are the fees associated with Binance Leveraged Tokens?The fees associated with Binance Leveraged Tokens are as follows:
i. Trading fees: Trading fees are charged when buying or selling tokens in the spot market, and the fee schedule is identical to spot trading.ii. Subscription fees: Subscription fees are charged when users choose to subscribe tokens, which is currently set at 0.1% per subscription.iii. Redemption fees: Redemption fees are charged when users choose to redeem tokens, which is currently set at 0.1% per redemption.iv. Management fees: A daily management fee of 0.01% will be charged at 00:00 UTC and reflected directly in the net asset value of the leveraged tokens;v. Funding fees: Funding fees are paid (or paid to) the underlying fund based on the funding rate and reflected directly in the net asset value of the Leveraged tokens. Binance takes no fees for funding rate transfers; these are directly between traders.
- 9. How to subscribe or redeem?
You can subscribe or redeem a leveraged token at net asset value with a daily cap of 1,000 tokens per account. However, the amount may vary according to prevailing market conditions.
To subscribe or redeem, simply go to Binance 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.
- 10. Can I withdraw Binance Leveraged Tokens to my wallet?Currently, Binance Leveraged Tokens are not withdrawable. You can store the tokens safely on your Binance account.