Perpetuals-based Leverage Tokens

Higher Leverage, No Liquidation Risk

Toros leverages perpetual futures (Perps) to create highly efficient leveraged tokens, giving users exposure to asset price movements without needing to hold the actual asset. These tokens provide dynamic, automated leverage, ensuring users maximize upside potential while mitigating liquidation risk.

Key Features

Higher Leverage at Lower Risk

• Perps offer more borrowing power with a lower liquidation price compared to money markets like Aave.

• This means higher leverage can be achieved safely, without increasing exposure to liquidation risks.

No Liquidation Risk

• Unlike traditional perpetual contracts, Toros tokens automatically rebalance when price movements occur.

• This protects positions from forced liquidations, providing greater stability than standard futures contracts.

Directional Upside Potential

• Designed for short- to medium-term directional trading, capturing maximum returns during strong market trends.

• Continuous leverage adjustments amplify gains when markets move favorably.

Considerations

Higher Borrowing Costs

• Perps tend to have higher borrowing costs than money markets like Aave.

• This results in long-term decay, making these tokens less ideal for extended holding periods.

Increased Volatility Decay at High Leverage

• The higher the leverage, the greater the impact of volatility decay.

• Frequent rebalancing at high leverage levels can lead to performance drag in sideways markets.