Bitcoin Bull Protected 2X

Deposits are added to Flat Money options at the target leverage

Downside is protected from the option strike price, preventing rapid losses

The option strike price is maintained close to the asset price at a consistent cost

Actual leverage is monitored within the target range

If leverage goes outside the target range, it’s rebalanced back to the target range

Because of constant re-leverage, when price keeps moving in one direction, it acts like a power perpetual

Toros leverage tokens are best used for short term directional upside. Single direction movements can exceed returns compared to typical perp leverage products. This is because Toros increases leverage as its price increases, to maintain the leverage range.

All Toros leverage tokens have built-in protection against downside liquidation. For example, if you had held a typical -2X ETH Short perp from March to May 2021, you would have been liquidated several times over as ETH went up in price. Holding the Toros Ethereum Bear -2X however, would have protected you from liquidation. This is because Toros rebalances on price movements to maintain the leverage range. When a Toros token decreases in value, its leverage also decreases.

In sideways (up-down) markets, Toros pools can underperform typical leverage products. This is known as Volatility Decay. Toros pools work similarly to Leveraged ETFs. Volatility decay occurs through rebalancing and rebalance fee. Additional decay is also caused by borrowing rates. Toros pools are therefore intended for short term directional bets for best results.