Binance Launches Binance Leveraged Tokens (BLVT) and Will List BTCUP and BTCDOWN

2020-05-12 00:20

Fellow Binancians,

Binance will launch Binance Leveraged Tokens (BLVT) and simultaneously list the first pair of leveraged tokens, BTCUP and BTCDOWN, on 2020/05/14 at 10:00 AM (UTC), with BTCUP/USDT and BTCDOWN/USDT trading pairs. BTCUP and BTCDOWN will only be available to trade via Binance Spot trading’s advanced interface (after the listing time above) and are not yet available to trade via Binance’s Spot Basic/Classic trading interfaces or mobile trading apps.

Binance Leveraged Tokens (BLVT) are newly designed by Binance, after careful consideration of user requests and evaluation of existing leverage products. Binance Leveraged Tokens provide lower risks and fees compared to derivatives and other conventional leveraged tokens (not issued by Binance), providing users with better protection.

About Binance Leveraged Tokens (BLVT)

Binance Leveraged Tokens are tradable assets (off-chain tokens) in the Binance spot market that give users 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.

BTCUP - allows you to generate leveraged gains when Bitcoin increases in price.
BTCDOWN - allows you to generate leveraged gains when Bitcoin decreases in price.

The new Binance Leveraged Tokens (BLVT) have the following characteristics:

Leverage: Binance Leveraged Tokens do not maintain constant leverage. Instead, Binance Leveraged Tokens maintain a constant target leveraged range between 1.5x and 3x. Since Binance Leveraged Tokens are not forced to maintain a set degree of leverage, Binance Leveraged Tokens rebalance on an as-needed basis, such as during extreme market movements.
Intelligent rebalancing mechanism: Positions of the Binance Leveraged Tokens will only be rebalanced when needed, which can increase profit when the market is favorable and reduce losses when the market is unfavorable, to avoid liquidation. For more information, please read “About Rebalancing”.
Low fees: The fees associated with Binance Leveraged Tokens are trading fees, redemptions fees, management fees and funding fees. The daily management fee of Binance Leveraged Tokens is as low as 0.01%, which reduces the user's holding cost. For more information, please refer to Binance Leveraged Tokens Fees.

Please ensure you have fully read the Binance Leveraged Tokens Risk Disclosure Statement prior to trading or participating in any Binance Leveraged Tokens products, and fully understand the risks associated with leveraged tokens. As a trader, you acknowledge and agree that you shall access and use Binance Leveraged Tokens at your own risk.

Further information:

Details:

Note:

Users who have previously traded any leveraged tokens on Binance will receive 30 days of zero trading fees in the form of rebates when trading Binance Leveraged Tokens (BLVT) from 2020/05/14 10:00 AM (UTC) to 2020/06/13 10:00 AM (UTC). Rebates will be distributed within 5 working days after the promotion ends. You will be able to login and see your rewards via Wallet > Distribution History.

The blockchain industry is still in its nascent stage. Every Binance product is launched and then matures based on our close attention to user feedback and suggestions. We welcome your feedback on Binance Leveraged Tokens (BLVT) as well as any feedback on existing or previously listed leveraged tokens. Please reach out to lvt@binance.com.

Risk warning: Cryptocurrency trading is subject to high market risk. Please make your trades cautiously. Binance will make best efforts to choose high-quality coins, but will not be responsible for your trading losses.

Thanks for your support!

Binance Team

2020/05/12

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