# Toros Documentation Toros provides automated, tokenized strategies on DeFi. All Toros products are ERC-20 tokens that maintain their strategy through automated onchain management, removing the need for manual position management. New to Toros? Start with the [Getting Started](/getting-started) guide. ## Product Categories * [Products Overview](/products/overview): Summary of all Toros product categories * [Leveraged Tokens](/products/overview-1): Amplified long and short exposure to crypto, commodities, and equity indices * [Options Strategies](/products/options-strategies): Automated options-based income, volatility, and protected leverage strategies * [1x Tokens](/products/1x-tokens): Synthetic spot exposure to assets on Arbitrum * [Index Strategies](/products/index-strategies): Thematic baskets of tokenized equities (Stacks) on Ethereum ## Resources * [FAQ](/resources/faq): Common questions about Toros products * [Security & Audits](/resources/security): Audit history, bug bounties, and smart contract risk * [Protocol Operations](/resources/protocol-operations): Vault management, rebalancing, and price oracles * [Brand Kit](/resources/brand-kit): Logo assets, typography, and brand colors * [Glossary](/resources/glossary): Key terms and definitions # Getting Started Toros provides automated, tokenized strategies as [ERC-20](/resources/glossary#erc-20) tokens. Each token runs its strategy onchain (leverage, options, spot exposure, or a thematic basket), so you hold a single token instead of managing positions yourself. This guide covers what you need, how to pick a product, and how to make your first trade. ## What You Need * A Web3 wallet (such as Rabby) * Funds on a supported chain: Arbitrum, Ethereum, or HyperEVM There is no account or signup. Connect your wallet at [toros.finance](https://toros.finance) to browse and trade. ## Choose a Product | If you want… | Use | | --------------------------------------------------------------- | -------------------------------------------------- | | Amplified long or short exposure (crypto, commodities, indices) | [Leveraged Tokens](/products/overview-1) | | Simple 1x spot-like exposure to a single asset | [1x Tokens](/products/1x-tokens) | | Income or downside-protected strategies | [Options Strategies](/products/options-strategies) | | A thematic basket of stocks (AI chips, quantum, peptides…) | [Index Strategies](/products/index-strategies) | Not sure where to start? See the [Products Overview](/products/overview). ## Make Your First Trade 1. Connect your wallet at [toros.finance](https://toros.finance) and switch to a supported chain. 2. Pick a product and open its page. 3. Choose what to pay with. Paying with the vault's **deposit asset** incurs zero slippage; any other token is automatically swapped first. See [Buying](/trading/buying). 4. Confirm the transaction in your wallet. You receive the product's ERC-20 token. To exit, sell the token back into your chosen asset; see [Selling](/trading/selling). ## Before You Start * **Fees**: Every buy and sell charges a trading fee, and rates vary by product. See [Fees](/trading/fees). * **Leveraged tokens are not buy-and-hold**: They are built for short- to medium-term directional views. In sideways or choppy markets, [volatility decay](/leveraged-tokens/volatility-decay) erodes value over time. * **Index Strategies follow market hours**: They hold tokenized equities, so trading can pause outside market sessions, and they are not available in all regions. * **Non-custodial**: You hold the tokens; strategies run through audited smart contracts. See [Security & Audits](/resources/security). ## Next Steps * [Products Overview](/products/overview): what each category does * [FAQ](/resources/faq): common questions * [Glossary](/resources/glossary): key terms explained # Overview Toros provides automated, tokenized strategies built on DeFi infrastructure. All products are [ERC-20](/resources/glossary#erc-20) tokens that can be held in compatible wallets. ## Leveraged Tokens Amplified exposure to crypto, commodities, and equity indices. Available in long and short variants at 1x through 4x leverage. Automated rebalancing maintains the target leverage and reduces liquidation risk without relying on a fixed daily reset. [Leveraged Tokens](/products/overview-1) ## 1x Tokens Synthetic spot exposure to assets that are difficult to access natively on Arbitrum. Hold a simple ERC-20 token that tracks the underlying asset at 1x, without bridging or using a centralized exchange. [1x Tokens](/products/1x-tokens) ## Options Strategies Automated options-based strategies using Toros Perpetual Options. Includes income strategies (Covered Call) and range-bound strategies (Short Volatility). [Options Strategies](/products/options-strategies) ## Index Strategies Thematic baskets of tokenized equities bundled into a single ERC-20 token. Offered as Stacks, each tracking a specific theme (semiconductors, quantum computing, AI cloud, peptide therapeutics) with weighting and rebalancing handled automatically onchain. Deployed on Ethereum. [Index Strategies](/products/index-strategies) # Leveraged Tokens Toros leveraged tokens are ERC-20 tokens with built-in leverage. They provide amplified exposure to an underlying asset without the need to manage margin, collateral, or liquidation risk manually. ## What Are Leveraged Tokens A leveraged token targets amplified exposure to the price movement of its underlying asset. A 2x long Bitcoin token aims for roughly twice Bitcoin exposure, while a 3x token targets roughly three times exposure. Leveraged tokens differ from perpetual futures in an important way: position size grows with profits. Returns compound during trends, meaning a sustained uptrend produces more than a simple multiple of the move. For example, during a sustained uptrend where Bitcoin rises 50%, a 3x leveraged token can return roughly 237%, more than the 150% a flat 3x multiplier would suggest, because profits are continuously reinvested into the position. This compounding is path-dependent: the return depends on how the price gets there, not just the net move. The same mechanism works against you in sideways or choppy markets, where repeated rebalancing steadily erodes value. See [Volatility Decay](/leveraged-tokens/volatility-decay). ## Why Traders Use Them * **Simplicity**: Hold an ERC-20 token instead of managing a leveraged trading position * **No liquidation management**: Automated [rebalancing](/resources/glossary#rebalancing) reduces effective leverage as prices decline, significantly reducing liquidation risk. Toros reports no forced liquidation events in over 4 years of operation. * **Compounding returns**: In trending markets, compounding amplifies gains beyond a simple leverage multiple ## How Toros Builds Leveraged Tokens Toros uses two different mechanisms to create leveraged tokens: * [**Money Market-Based**](/leveraged-tokens/money-market-based): Uses Aave lending and borrowing to build leveraged positions. Primarily used for major assets like BTC and ETH. * [**Perpetuals-Based**](/leveraged-tokens/perpetuals-based): Uses perpetual futures (GMX on Arbitrum, Hyperliquid on HyperEVM) to establish leveraged positions. Used for altcoins, bear (short) tokens, and HyperEVM-deployed exposures to commodities and equity indices. Both mechanisms include automated rebalancing to maintain the target leverage ratio as market conditions change, rather than relying on a fixed daily reset. ## Important: Not for Passive Holding Leveraged tokens are designed for short to medium-term positions where you have a directional view. They are not buy-and-hold products. In sideways or choppy markets, [volatility decay](/leveraged-tokens/volatility-decay) erodes value over time. Active monitoring is recommended. ## Important Risks * [**Volatility Decay**](/leveraged-tokens/volatility-decay): Repeated rebalancing erodes value in sideways or choppy markets. Leveraged tokens perform best during clear trends. * [**Slippage**](/leveraged-tokens/slippage): Large trades or low-liquidity conditions can result in execution prices that differ from expectations. * **Costs**: Interest expenses (money market-based) or funding payments (perpetuals-based) reduce returns over time. ## Further Reading * [Available Tokens](/leveraged-tokens/available-tokens) for the full product catalogue * [Protected Leveraged Tokens](/leveraged-tokens/protected-leveraged-tokens) for leveraged tokens with downside protection # Options Strategies Toros offers automated options-based strategies built around [Toros Perpetual Options](/options-strategies/perpetual-options). These products span both sides of the options marketplace: income strategies for LPs (Covered Call, Short Volatility) and downside-protected leverage for traders (Protected Leveraged Tokens). All run without manual expiry or strike management. | Ticker | Strategy | Market View | Chain | | -------------------------------------------------------------------------------------- | ------------------------- | ------------------------------------------------------ | -------- | | [BTCCOVCALL1X](https://toros.finance/vault/0x2fbadd08ade2e8a24cf1fe3a58fe918336b39a72) | Covered Call | Income in range-bound to moderately bullish conditions | Arbitrum | | [BTCBEARVOL1X](https://toros.finance/vault/0x8c068d7033d66c4aacab25ce8219e5688c60155f) | Short Volatility | Range-bound volatility strategy | Arbitrum | | [BTCBULLP1X](https://toros.finance/vault/0x8990f5e57a8e0b5cabb68d1cd5bd790a92e32f5c) | Protected Leveraged Token | Leveraged upside with downside protection | Arbitrum | | [BTCBULLP2X](https://toros.finance/vault/0x99c917097d455d54f68a6b8e73095e30badddace) | Protected Leveraged Token | Leveraged upside with downside protection | Arbitrum | | [BTCBULLP3X](https://toros.finance/vault/0x31481fa8e8802eacf1cfa3aabdd11be24fcc3476) | Protected Leveraged Token | Leveraged upside with downside protection | Arbitrum | ## Available Strategies ### Covered Call An income strategy that turns BTC exposure into recurring cash flow through the Toros Covered Call LP. Best suited for range-bound or moderately bullish conditions, with full downside and capped upside. [Learn more about Covered Call](/options-strategies/covered-call) ### Short Volatility A volatility-focused strategy built for quieter BTC conditions. It combines the Toros Covered Call LP with an actively rebalanced BTC short on Aave to reduce directional exposure and focus on contained price action. [Learn more about Short Volatility](/options-strategies/short-volatility) ### Protected Leveraged Tokens An options-based strategy that combines leveraged upside exposure with downside protection. PLTs use Toros Perpetual Options to establish a protection floor. PLT holders pay ongoing funding and premium fees, while the Covered Call LP acts as counterparty. Available in 1x, 2x, and 3x Bitcoin leverage on Arbitrum. [Learn more about Protected Leveraged Tokens](/leveraged-tokens/protected-leveraged-tokens) # 1x Tokens 1x Tokens provide synthetic spot exposure to assets that are difficult to access natively on Arbitrum. Instead of bridging to another chain, using a centralized exchange, or dealing with shallow spot liquidity, users can hold a simple ERC-20 token that tracks the underlying asset at 1x. ## How They Work 1x Tokens use perpetual futures on GMX to create synthetic exposure. Toros maintains a 1x long position that closely tracks the underlying asset price. The protocol handles all position management automatically: * Maintains leverage near 1x through algorithmic rebalancing * Manages funding payments and trading fees * Rolls positions continuously with no user intervention Because these are synthetic positions (not true spot holdings), there are costs involved. Funding payments, trading fees, and minor tracking differences mean 1x Tokens may not perfectly match the spot price over long periods. Some 1X tokens are provided without funding payments or trading fees, and are true spot holdings. These are ETH1X and BTC1X which are provided for free with no fees taken. The purpose of providing these for free is for users to take advantage of automated trading with stop orders to schedule buys and sells at price targets. As well as a way for users to track their active portfolio of these assets on Toros personally and for participation in the leaderboard. ## Available 1x Tokens 1x Tokens are available on Arbitrum, with select tokens also deployed on Ethereum. | Ticker | Vault Name | Asset | Networks | | ------ | -------------- | ----------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | BNB1X | BNB 1X | BNB | [Arbitrum](https://toros.finance/vault/0xb6e92517c99087cb58d8e8a8e649c598137f3fc3) | | BTC1X | Bitcoin 1X | Bitcoin | [Arbitrum](https://toros.finance/vault/0x326e1c8b9cb088cbbeb5440bd0ebaac0d0607538), [Ethereum](https://toros.finance/vault/0x74dea818734cad7ca485d47be2742f3c464b84f0) | | CRV1X | Curve DAO 1X | Curve DAO | [Arbitrum](https://toros.finance/vault/0x0f5a811cb153bdcfd74ad69e82567396385fec3a) | | DOGE1X | Dogecoin 1X | Dogecoin | [Arbitrum](https://toros.finance/vault/0x06abba36d0991a83e75f54dbb2a8dc91f30f8c78) | | ETH1X | Ethereum 1X | Ethereum | [Arbitrum](https://toros.finance/vault/0x11f0fd32f8b6db76067d710582b4b4739ad49a75), [Ethereum](https://toros.finance/vault/0xf91706c1b55ce14aa8e89260e1f1734bbf41dd5f) | | GOLD1X | Gold 1X | Gold | [Arbitrum](https://toros.finance/vault/0xf7e1069f3f31f9d729b3c10225cab91362958f25) | | HYPE1X | Hyperliquid 1X | Hyperliquid | [Arbitrum](https://toros.finance/vault/0xbfc82f7823c0261903057b04b1c7c0e4e49eb550) | | LINK1X | Chainlink 1X | Chainlink | [Arbitrum](https://toros.finance/vault/0xecb200a89dfcc09663493a0f67089c7febf08d14) | | PUMP1X | Pump.fun 1X | Pump.fun | [Arbitrum](https://toros.finance/vault/0x6030ab5a681398ab5616da99a9c8453fd84bc802) | | SOL1X | Solana 1X | Solana | [Arbitrum](https://toros.finance/vault/0xa6686c9c6bc90f84e3fb77c3d5417fd66bc05697) | | SUI1X | Sui 1X | Sui | [Arbitrum](https://toros.finance/vault/0xc8f346c8045fa911eac2ffef628e0c5fcdb445bd) | | XRP1X | XRP 1X | XRP | [Arbitrum](https://toros.finance/vault/0x1369e0f1520671cd0748984c40955f6a6af40487) | For options-based products such as [BTCCOVCALL1X](https://toros.finance/vault/0x2fbadd08ade2e8a24cf1fe3a58fe918336b39a72), see [Covered Call](/options-strategies/covered-call). ## Key Considerations * **Not true spot**: 1x Tokens are synthetic products backed by perpetual futures positions, not actual holdings of the underlying asset. * **Funding costs**: Perpetual futures positions pay or receive funding rates. In bullish markets, long positions typically pay funding, which reduces returns over time. * **Tracking differences**: Minor deviations from the spot price can occur due to funding payments, trading fees, and rebalancing. * **Not a passive substitute for spot**: Over long holding periods, cumulative funding costs and tracking drift mean 1x tokens may underperform direct spot holdings. They are best suited for gaining exposure to assets not natively available on a given chain. # Index Strategies Index Strategies are thematic baskets of tokenized equities bundled into a single ERC-20 token. Each one tracks a specific investment theme (semiconductors, quantum computing, AI cloud infrastructure, peptide therapeutics), holding a curated set of real-world stocks in one position, with weighting and rebalancing handled automatically onchain. Toros offers its index strategies as **Stacks**. Each Stack (for example, *The Semiconductor Stack*) is a single index covering one theme, giving proportional exposure to every constituent through a single trade. Index Strategies are deployed on Ethereum. ## How They Work Each Stack holds a basket of [Ondo Stocks](https://ondo.finance/global-markets) tokenized equities: tokenized versions of real listed stocks, not synthetic perpetual positions. * **Construction**: A small, deliberately concentrated set of constituents is selected to express a specific theme. * **Weighting**: Either conviction-tiered (weighted by the strength of each constituent's position in the theme, not market cap) or equal-weight, depending on the Stack. * **Rebalancing**: The basket is rebalanced toward its target weights whenever any constituent drifts more than 5% from its target. * **Reconstitution**: Constituents are reviewed annually for eligibility. New names can be added as they list on Ondo Stocks, and removed on delisting, acquisition, or loss of thematic fit. * **Settlement**: Withdrawals settle onchain in the basket's reference stablecoin. Because Index Strategies hold tokenized equities, they track **real-world market hours**. Trading can pause outside regular and overnight market sessions, unlike Toros crypto products which trade 24/7. ## Available Stacks | Ticker | Stack | Theme | Constituents | Weighting | Network | | ------------------------------------------------------------------------------ | ----------------------- | ---------------------------- | :----------: | ----------------- | -------- | | [CHIP](https://toros.finance/vault/0xde3dc6b7e7680625c8655af56483009e84cf3411) | The Semiconductor Stack | Leading-edge AI silicon | 6 | Conviction-tiered | Ethereum | | [NEO](https://toros.finance/vault/0x36cabae37df8893344a16409c6ea014f5e8327f6) | The Neocloud Stack | AI compute capacity | 6 | Conviction-tiered | Ethereum | | [QNTM](https://toros.finance/vault/0x254da6d6d939340973c90935f5c1c2cf39cc030c) | The Quantum Stack | Quantum computing pure-plays | 4 | Equal-weight | Ethereum | | [PEPT](https://toros.finance/vault/0x8e173b8041ef6adff7adbd22a0b2744ebc066c0b) | The Peptide Stack | Peptide therapeutics | 5 | Conviction-tiered | Ethereum | ### The Semiconductor Stack (CHIP) Concentrated exposure to the chokepoint companies that make leading-edge AI compute possible: GPU anchors, foundries, EUV lithography, networking, and memory. **Thesis:** AI compute demand will keep growing for years, and the companies that supply the leading-edge silicon, along with the tools, memory, and networking that scale it, should capture most of the value. | Constituent | Company | Role | Target Weight | | ----------- | -------------------- | ------------------------------------- | :-----------: | | NVDA | NVIDIA | AI GPU anchor, CUDA software moat | 20% | | TSM | Taiwan Semiconductor | Leading-edge foundry | 20% | | ASML | ASML | Sole supplier of EUV lithography | 17% | | AVGO | Broadcom | Custom AI silicon and networking | 15% | | AMD | AMD | Hedge against NVIDIA monopoly pricing | 15% | | MU | Micron | HBM memory, the scaling bottleneck | 13% | [Trade CHIP on Toros](https://toros.finance/vault/0xde3dc6b7e7680625c8655af56483009e84cf3411) ### The Neocloud Stack (NEO) Exposure to the companies capturing the gap between AI compute demand and what hyperscalers can physically build, across the cloud layer, the infrastructure layer, and the hybrid bridge between them. **Thesis:** AI compute demand is outrunning what hyperscalers can physically build. The companies that own contracted power, operate AI-specialized data centers, and rent GPUs at scale capture the gap between demand and installed capacity. | Constituent | Company | Role | Target Weight | | ----------- | --------------- | ------------------------------------- | :-----------: | | NBIS | Nebius | Vertically integrated AI cloud | 25% | | CRWV | CoreWeave | Pure neocloud operator | 23% | | APLD | Applied Digital | Purpose-built AI data center landlord | 20% | | IREN | IREN | Hybrid: power, campus, and GPU cloud | 12% | | WULF | TeraWulf | Contracted HPC landlord | 10% | | CIFR | Cipher Mining | Contracted HPC with direct AWS lease | 10% | [Trade NEO on Toros](https://toros.finance/vault/0x36cabae37df8893344a16409c6ea014f5e8327f6) ### The Quantum Stack (QNTM) One position per quantum computing architecture: trapped-ion, superconducting, annealing, and photonic. Equal-weighted as a deliberate refusal to predict which architecture wins. **Thesis:** Quantum computing is expected to commercialize over the next five to ten years, but the winning hardware architecture is unknowable today. Equal-weighting one pure-play per architecture aims to capture the category winner without predicting which approach scales first. | Constituent | Company | Architecture | Target Weight | | ----------- | ---------------------- | --------------- | :-----------: | | IONQ | IonQ | Trapped-ion | 25% | | RGTI | Rigetti Computing | Superconducting | 25% | | QBTS | D-Wave Quantum | Annealing | 25% | | QUBT | Quantum Computing Inc. | Photonic | 25% | [Trade QNTM on Toros](https://toros.finance/vault/0x254da6d6d939340973c90935f5c1c2cf39cc030c) ### The Peptide Stack (PEPT) Exposure to the GLP-1 megatrend and the broader peptide therapeutics theme, spanning franchise leaders, innovation, manufacturing, and potential regulatory beneficiaries. **Thesis:** Peptide therapeutics is in its most active period of innovation in a generation, led by the GLP-1 obesity megatrend. The basket deliberately spreads exposure across drug makers, distribution, and manufacturing rather than concentrating in a single GLP-1 leader. | Constituent | Company | Role | Target Weight | | ----------- | ------------ | -------------------------------------------- | :-----------: | | LLY | Eli Lilly | GLP-1 franchise leader, broadest pipeline | 36% | | HIMS | Hims & Hers | Compounding-pathway beneficiary | 33% | | MRK | Merck | First-in-class oral peptide PCSK9 inhibitor | 16% | | NVO | Novo Nordisk | GLP-1 anchor with amycretin pipeline | 8% | | AMGN | Amgen | MariTide obesity and cardiovascular pipeline | 7% | [Trade PEPT on Toros](https://toros.finance/vault/0x8e173b8041ef6adff7adbd22a0b2744ebc066c0b) ## Fees & Access All Stacks share the same fees and access terms. A lock period applies after deposit before tokens can be sold. | Fee / Term | Value | | --------------- | -------- | | Entry fee | 0.05% | | Performance fee | 5% | | Lock time | 24 hours | ## Key Considerations * **Concentrated, not diversified**: Each Stack holds a small number of constituents chosen to express a specific theme. This concentrates both upside and risk: a single constituent can have outsized impact on the token's value. * **Tokenized equity wrapper risk**: Constituents are tokenized equities that provide economic exposure to the underlying stock rather than direct share ownership. They carry smart-contract, custodian, and regulatory risk on top of the underlying stock's own risk. * **Market hours**: Because Index Strategies track real equities, trading can pause outside regular and overnight market sessions. They do not trade 24/7 like crypto products. * **Thematic exposure**: Each Stack is designed to express a directional view on a theme and carries its own theme-specific risks; see the strategy and risk detail on each vault page on the Toros app. * **Eligibility and regional access**: Because these strategies hold Ondo Stocks assets, they are subject to eligibility and regional access rules and are not available in all jurisdictions. # Available Tokens Toros offers leveraged tokens across a range of assets. Each token is an ERC-20 that maintains its target leverage through automated rebalancing. Each network below represents a separate vault deployment. Network names link to the confirmed chain-specific vault page where available. ## Bitcoin | Ticker | Vault Name | Asset | Position | Leverage | Networks | | --------- | --------------- | ------- | -------- | -------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | BTCBULL2X | Bitcoin Bull 2X | Bitcoin | Long | 2x | [Arbitrum](https://toros.finance/vault/0xe3254397f5d9c0b69917ebb49b49e103367b406f), [Ethereum](https://toros.finance/vault/0x447b12841ed275636a7719d162d2df379cc81152) | | BTCBULL3X | Bitcoin Bull 3X | Bitcoin | Long | 3x | [Arbitrum](https://toros.finance/vault/0xad38255febd566809ae387d5be66ecd287947cb9), [Ethereum](https://toros.finance/vault/0x778176be78245808bb4572dd86b9b796213e5992) | | BTCBULL4X | Bitcoin Bull 4X | Bitcoin | Long | 4x | [Arbitrum](https://toros.finance/vault/0xd49d22f2a2f05b2088fd42503409e430a8a7d827) | | BTCBEAR1X | Bitcoin Bear 1X | Bitcoin | Short | 1x | [Arbitrum](https://toros.finance/vault/0x27d8fdb0251b48d8edd1ad7bedf553cf99abe7b0), [Ethereum](https://toros.finance/vault/0x6316ebe9dfa8de65a39af8bfd2523146b3c3239f) | | BTCBEAR2X | Bitcoin Bear 2X | Bitcoin | Short | 2x | [Arbitrum](https://toros.finance/vault/0x3e63f81b3aa4e821392fccdabdd7d0c960c0235e) | ## Ethereum | Ticker | Vault Name | Asset | Position | Leverage | Networks | | --------- | ---------------- | -------- | -------- | -------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | ETHBULL2X | Ethereum Bull 2X | Ethereum | Long | 2x | [Arbitrum](https://toros.finance/vault/0x696f6d66c2da2aa4a400a4317eec8da88f7a378c), [Ethereum](https://toros.finance/vault/0x907bd45742d811ad535d2445185e73bc367751d1) | | ETHBULL3X | Ethereum Bull 3X | Ethereum | Long | 3x | [Arbitrum](https://toros.finance/vault/0xf715724abba480d4d45f4cb52bef5ce5e3513ccc), [Ethereum](https://toros.finance/vault/0xce09fad0dd5e70041402df947ab3ecf8e430becb) | | ETHBULL4X | Ethereum Bull 4X | Ethereum | Long | 4x | [Arbitrum](https://toros.finance/vault/0xbf4ab4224b2ac26667cd4b8a0e5134d55cb0b293) | | ETHBEAR1X | Ethereum Bear 1X | Ethereum | Short | 1x | [Arbitrum](https://toros.finance/vault/0x40d30b13666c55b1f41ee11645b5ea3ea2ca31f8), [Ethereum](https://toros.finance/vault/0xbc176e9cada297c7b7142dd7447bb114ad90d143) | | ETHBEAR2X | Ethereum Bear 2X | Ethereum | Short | 2x | [Arbitrum](https://toros.finance/vault/0x41e29b6d6295f287070b3759ccaa6964b7f4cb31) | ## Gold | Ticker | Vault Name | Asset | Position | Leverage | Networks | | ---------- | ------------ | ----- | -------- | -------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | GOLDBULL2X | Gold Bull 2X | Gold | Long | 2x | [Arbitrum](https://toros.finance/vault/0xc8e7e840ca82804c14061a27aaca1b97a5a592ab), [Ethereum](https://toros.finance/vault/0x6fcb08c5f8a69cc8c663bb4a2faaad017631577f) | | GOLDBULL3X | Gold Bull 3X | Gold | Long | 3x | [Arbitrum](https://toros.finance/vault/0x350f9d38284e1edb4746ab373c12998d3a66dc3f), [Ethereum](https://toros.finance/vault/0x74a60dae44deda8e6c6445cbbb067097e08b682c) | | GOLDBEAR1X | Gold Bear 1X | Gold | Short | 1x | [Arbitrum](https://toros.finance/vault/0x4ef67f28ab2d3ba16f1d110fa7c084d62d7ef2cc) | ## Solana | Ticker | Vault Name | Asset | Position | Leverage | Networks | | --------- | -------------- | ------ | -------- | -------- | ---------------------------------------------------------------------------------- | | SOLBULL2X | Solana Bull 2X | Solana | Long | 2x | [Arbitrum](https://toros.finance/vault/0xe9a71f5230a41aa09f4099a41d24450e85462fe1) | | SOLBULL3X | Solana Bull 3X | Solana | Long | 3x | [Arbitrum](https://toros.finance/vault/0xcfec7a15726d4b5d183783c9033b921ba3a5090a) | | SOLBEAR1X | Solana Bear 1X | Solana | Short | 1x | [Arbitrum](https://toros.finance/vault/0xda6d2144faec116b53715f76ca4a79925a3bb1fb) | | SOLBEAR2X | Solana Bear 2X | Solana | Short | 2x | [Arbitrum](https://toros.finance/vault/0x1227a7c904f0a3923f1319ccce15ab23a66fd4d2) | ## Other Assets (Arbitrum) | Ticker | Vault Name | Asset | Position | Leverage | Networks | | ---------- | ------------------- | ----------- | -------- | -------- | ---------------------------------------------------------------------------------- | | SUIBULL2X | Sui Bull 2X | Sui | Long | 2x | [Arbitrum](https://toros.finance/vault/0x1a9b3a496fe222ba84c53e215a904c555c3157c9) | | SUIBULL3X | Sui Bull 3X | Sui | Long | 3x | [Arbitrum](https://toros.finance/vault/0xb6783ac4a451e379af99067a02c41f1819123ec0) | | SUIBEAR1X | Sui Bear 1X | Sui | Short | 1x | [Arbitrum](https://toros.finance/vault/0x1e0e416add4f3a66fd4258fa21942d9116e1077a) | | XRPBULL2X | XRP Bull 2X | XRP | Long | 2x | [Arbitrum](https://toros.finance/vault/0xd0f9912f604c0a5fd9bd03889243f5c426b38c81) | | XRPBULL3X | XRP Bull 3X | XRP | Long | 3x | [Arbitrum](https://toros.finance/vault/0xa2bd75d941634f2d2800ca9a20b20a17a2fea17e) | | XRPBEAR1X | XRP Bear 1X | XRP | Short | 1x | [Arbitrum](https://toros.finance/vault/0x764fad1f0a4b1d5c20f0432ba5c8c594c57051b7) | | LINKBULL2X | Chainlink Bull 2X | Chainlink | Long | 2x | [Arbitrum](https://toros.finance/vault/0x4ec9c0f08bdce085e9d4053b393a290d7afc8083) | | LINKBEAR1X | Chainlink Bear 1X | Chainlink | Short | 1x | [Arbitrum](https://toros.finance/vault/0x1d01303f4cbd1b4402d300ce1591cbadad74e075) | | DOGEBULL2X | Dogecoin Bull 2X | Dogecoin | Long | 2x | [Arbitrum](https://toros.finance/vault/0x7d37089ed7434c50f659d40b1e1fe09be026fc77) | | DOGEBEAR1X | Dogecoin Bear 1X | Dogecoin | Short | 1x | [Arbitrum](https://toros.finance/vault/0x4d92f42b2936d2c685027cad2f682f2ce8e812ac) | | BNBBULL2X | BNB Bull 2X | BNB | Long | 2x | [Arbitrum](https://toros.finance/vault/0x829e90e558a2eeba733feffad3419543c4bcba08) | | BNBBEAR1X | BNB Bear 1X | BNB | Short | 1x | [Arbitrum](https://toros.finance/vault/0x7aed02321cd9aefcaeb6942bc10b35d8daf85722) | | CRVBULL2X | Curve DAO Bull 2X | Curve DAO | Long | 2x | [Arbitrum](https://toros.finance/vault/0xf8ede83467778ed0c1ab54cb21f17dd9d33e6c86) | | CRVBEAR1X | Curve DAO Bear 1X | Curve DAO | Short | 1x | [Arbitrum](https://toros.finance/vault/0xee46dee5594adfe7aeb9b9c7ac33baf214b8f075) | | AAVEBULL2X | Aave Bull 2X | Aave | Long | 2x | [Arbitrum](https://toros.finance/vault/0xddaacbdbf778924e11eb6d50eb6ce5eb3cb95df5) | | AAVEBEAR1X | Aave Bear 1X | Aave | Short | 1x | [Arbitrum](https://toros.finance/vault/0x4aca336c6a4effbd571ab4c2621ee0ec4a594c46) | | HYPEBULL2X | Hyperliquid Bull 2X | Hyperliquid | Long | 2x | [Arbitrum](https://toros.finance/vault/0xe2afa0ca430432ffd22564bdea87fa4cfb879c4e) | | HYPEBULL3X | Hyperliquid Bull 3X | Hyperliquid | Long | 3x | [Arbitrum](https://toros.finance/vault/0x0219549d65ac79326bd7874f6c610cb5e1b76d33) | | HYPEBEAR1X | Hyperliquid Bear 1X | Hyperliquid | Short | 1x | [Arbitrum](https://toros.finance/vault/0x44f9cbc1356f5592f91a69efe923b91514986381) | | PUMPBULL2X | Pump.fun Bull 2X | Pump.fun | Long | 2x | [Arbitrum](https://toros.finance/vault/0x6d72a0883aa4ac3d32067b6ec21e3f84a67485e2) | | PUMPBEAR1X | Pump.fun Bear 1X | Pump.fun | Short | 1x | [Arbitrum](https://toros.finance/vault/0x360e83bd7f746a7bcae4685c2bf589882392f54c) | ## HyperEVM Toros leveraged tokens on HyperEVM use [Hyperliquid](https://hyperliquid.xyz) perpetual futures rather than GMX. This unlocks exposure to assets that Hyperliquid lists as perps, including commodities and equity indices alongside crypto. See [Perpetuals-Based](/leveraged-tokens/perpetuals-based) for how the mechanism works. | Ticker | Vault Name | Asset | Position | Leverage | Networks | | ----------- | ------------------ | ---------- | -------- | -------- | ---------------------------------------------------------------------------------- | | SLVBULL2X | Silver Bull 2X | Silver | Long | 2x | [HyperEVM](https://toros.finance/vault/0x0ac8d6a003de1869d450216116736ae4b8b4f471) | | SLVBULL3X | Silver Bull 3X | Silver | Long | 3x | [HyperEVM](https://toros.finance/vault/0xa8b3f14d88593e1b5460654cf8ecdaf6d47165a9) | | SLVBEAR1X | Silver Bear 1X | Silver | Short | 1x | [HyperEVM](https://toros.finance/vault/0x5bef15a0a12f108fc92d4838d37822b27633079e) | | GOLDBULL2X | Gold Bull 2X | Gold | Long | 2x | [HyperEVM](https://toros.finance/vault/0xee55e2df9a98abc3f9a2f40fa96279742b1858be) | | GOLDBULL3X | Gold Bull 3X | Gold | Long | 3x | [HyperEVM](https://toros.finance/vault/0x6379297d251535bd4497c90d001787b53603cca1) | | GOLDBEAR1X | Gold Bear 1X | Gold | Short | 1x | [HyperEVM](https://toros.finance/vault/0xfd243e56e241a916b97d21c31b200bc0b13e7bde) | | NVDABULL2X | Nvidia Bull 2X | Nvidia | Long | 2x | [HyperEVM](https://toros.finance/vault/0xc722466cfc5bc7e7cc6e01a984621900376c5fff) | | NVDABULL3X | Nvidia Bull 3X | Nvidia | Long | 3x | [HyperEVM](https://toros.finance/vault/0x46f34e200aa5a1a220b74e5d28665cc3cfcc739a) | | NVDABEAR1X | Nvidia Bear 1X | Nvidia | Short | 1x | [HyperEVM](https://toros.finance/vault/0x5795af6c5573cf527d1d7d2c39cd06a61d7901af) | | NDXBULL2X | Nasdaq 100 Bull 2X | Nasdaq 100 | Long | 2x | [HyperEVM](https://toros.finance/vault/0xbc8124fa384247df4e6f3ea2548bb78ab4ba9fe4) | | NDXBULL3X | Nasdaq 100 Bull 3X | Nasdaq 100 | Long | 3x | [HyperEVM](https://toros.finance/vault/0xbdb2a2641d8e291437e244c08e4433a13796e8de) | | NDXBEAR1X | Nasdaq 100 Bear 1X | Nasdaq 100 | Short | 1x | [HyperEVM](https://toros.finance/vault/0x6e1a1c35ae582873207df2a735a314892b2664f0) | | SP500BULL2X | S\&P 500 Bull 2X | S\&P 500 | Long | 2x | [HyperEVM](https://toros.finance/vault/0xb360401baebe769aaedf0212cb1ad6fd8430a282) | | SP500BULL3X | S\&P 500 Bull 3X | S\&P 500 | Long | 3x | [HyperEVM](https://toros.finance/vault/0xf1bba105ee5eb20129a943ab23ba1faeaef6b947) | | SP500BEAR1X | S\&P 500 Bear 1X | S\&P 500 | Short | 1x | [HyperEVM](https://toros.finance/vault/0xe0bef0312c3f54e9a163530fc98c2027cb6154b7) | For protected leveraged tokens, see [Protected Leveraged Tokens](/leveraged-tokens/protected-leveraged-tokens). # Money Market-Based Some Toros leveraged tokens achieve their target leverage through money market protocols like Aave. This is one of two mechanisms Toros uses to build leveraged tokens. ## How It Works 1. Deposit collateral (e.g. ETH or BTC) into Aave 2. Borrow a stablecoin against the collateral 3. Use the borrowed stablecoin to buy more of the collateral asset 4. Repeat until the target leverage ratio is reached The result is a leveraged long position built entirely onchain through lending and borrowing. For short positions, the process is reversed: deposit stablecoins, borrow the target asset, and sell it. ## Rebalancing The protocol automatically rebalances positions to maintain the target leverage ratio. When the price of the underlying asset moves significantly, the position is adjusted: * If the price rises, the effective leverage decreases. The protocol borrows more to restore the target ratio. * If the price falls, the effective leverage increases. The protocol repays some debt to reduce risk. This rebalancing is what prevents liquidation in most market conditions. ## Advantages * Fully transparent and verifiable onchain * No funding rate payments (unlike perpetuals-based tokens) * Positions are backed by real collateral in established lending markets ## Costs * Borrow interest accrues continuously on the debt portion * Rebalancing incurs gas costs and potential slippage * [Volatility decay](/leveraged-tokens/volatility-decay) affects performance in choppy markets ## Which Tokens Use This Mechanism Money market-based leveraged tokens are primarily used for major assets like Bitcoin and Ethereum, where Aave has deep liquidity. For the full token list, see [Available Tokens](/leveraged-tokens/available-tokens). ## Comparison For an alternative mechanism using perpetual futures, see [Perpetuals-Based](/leveraged-tokens/perpetuals-based). # Perpetuals-Based Some Toros leveraged tokens achieve their target leverage by opening positions on perpetual futures protocols. This is one of two mechanisms Toros uses to build leveraged tokens. Toros uses two perpetual futures venues depending on the chain: * **GMX on Arbitrum**: used for crypto leveraged tokens such as altcoin majors and bear positions * **Hyperliquid on HyperEVM**: used for assets that Hyperliquid lists as perps, including commodities (Gold, Silver) and equity indices (Nvidia, Nasdaq 100, S\&P 500) alongside crypto ## How It Works 1. Deposit collateral into the perpetual futures venue (GMX or Hyperliquid) 2. Open a leveraged perpetual futures position at the target leverage ratio 3. The protocol manages the position automatically, including rollovers and adjustments This approach is more capital-efficient than the money market method because a single transaction establishes the full leveraged position. ## Rebalancing Like all Toros leveraged tokens, perpetuals-based tokens are rebalanced to maintain their target leverage. The protocol adjusts position sizes when the underlying asset price moves significantly. This automated rebalancing reduces the risk of liquidation by scaling down exposure as prices move against the position. ## Advantages * Capital-efficient: full leverage in a single position * Supports a wider range of assets, including altcoins with limited lending market liquidity and non-crypto exposures (commodities, equity indices) accessible via Hyperliquid * No need to manage borrow positions across lending protocols ## Costs * Funding rate payments: perpetual futures positions pay or receive a funding rate depending on market conditions. In bullish markets, long positions typically pay funding to shorts. * Trading fees on position adjustments * [Volatility decay](/leveraged-tokens/volatility-decay) from rebalancing in choppy markets ## Which Tokens Use This Mechanism Perpetuals-based tokens are commonly used for altcoin leveraged tokens, bear (short) tokens, and HyperEVM-deployed tokens for commodities and equity indices. 1x Tokens also use this mechanism. For the full token list, see [Available Tokens](/leveraged-tokens/available-tokens). ## Comparison For an alternative mechanism using lending and borrowing, see [Money Market-Based](/leveraged-tokens/money-market-based). # Protected Leveraged Tokens Protected Leveraged Tokens (PLTs) combine upside leverage with downside protection. They amplify gains during uptrends while capping losses through a protective floor during downturns. ## Payoff Profile ![Protected leverage expected payoff](/files/Lqo6ZnJnDgL5T2XkGBuM) *Expected payoff with protection built in (excluding funding and rebalance fees). Losses are capped below the strike price while upside remains leveraged.* ![Protected 2X vs regular leverage vs asset price](/files/9ryW9DBN4xWmz2mcKy07) *Protected 2X (blue) vs regular Leverage Token 2X (red) vs asset price (yellow). The protected version flattens during drawdowns while the regular token keeps falling.* ![BTCBULLP3X protection in action](/files/hoSwqO0M37hqYth8YuXU) *BTCBULLP3X vs BTCUSD showing the protection zone in a real market scenario. The protected token delivered +27.6% while BTC moved only +1.6%.* ## How They Work On the way up, PLTs behave like normal leveraged tokens. Profits compound as the position grows. On the way down, once the protection floor is reached, losses flatten instead of continuing to spiral lower. The protection floor is established using options. ### Components PLTs use three integrated components: * **Toros Perpetual Options** to establish the protection floor * **Aave lending and borrowing** to hedge downside exposure * **Shared pool architecture** where all token holders participate in a unified leveraged position ### How Protection Works The protection floor is powered by Toros Perpetual Options, a two-sided onchain options marketplace. PLT holders pay ongoing funding and premium fees to maintain their downside protection. These fees flow to the [Covered Call LP](/options-strategies/covered-call), which acts as counterparty by providing the liquidity that backs the protection. This creates a continuous marketplace where protection buyers (PLT holders) and income seekers (Covered Call LP depositors) each get what they need. When the price falls below the strike level, leverage reduces to zero and rebalancing stops. This eliminates further volatility decay during the drawdown. ## Tradeoffs Protection comes at a cost. PLTs charge higher fees (option premiums) compared to standard leveraged tokens. These premiums are predictable and function like insurance. The premium is built into the trading fee: **BTCBULLP1X 0.66%, BTCBULLP2X 1.33%, BTCBULLP3X 2%** per trade (each direction), with no separate management or performance fee. See [Fees](/trading/fees) for the full table. Protection reduces drawdowns but does not eliminate losses entirely. The protection floor depends on the strike price, which may be adjusted over time as options are rolled. ## Who Are PLTs For PLTs suit traders who want leveraged exposure but prioritize limiting downside risk. They are best for users who are willing to pay a premium for reduced drawdowns in trending or uncertain markets. ## Available Protected Leveraged Tokens All protected leveraged tokens are currently Bitcoin-only on Arbitrum. | Ticker | Vault Name | Asset | Position | Leverage | Chains | | ------------------------------------------------------------------------------------ | ------------------------- | ------- | -------- | -------- | -------- | | [BTCBULLP1X](https://toros.finance/vault/0x8990f5e57a8e0b5cabb68d1cd5bd790a92e32f5c) | Bitcoin Bull Protected 1X | Bitcoin | Long | 1x | Arbitrum | | [BTCBULLP2X](https://toros.finance/vault/0x99c917097d455d54f68a6b8e73095e30badddace) | Bitcoin Bull Protected 2X | Bitcoin | Long | 2x | Arbitrum | | [BTCBULLP3X](https://toros.finance/vault/0x31481fa8e8802eacf1cfa3aabdd11be24fcc3476) | Bitcoin Bull Protected 3X | Bitcoin | Long | 3x | Arbitrum | # Volatility Decay Volatility decay is the gradual erosion of value that affects leveraged tokens during sideways or choppy markets. It is one of the most important risks to understand before holding leveraged tokens. ## What Is Volatility Decay Leveraged tokens rebalance as needed to maintain their target leverage. In trending markets, this works in the holder's favor because profits compound. But in range-bound markets where the price moves up and down without a clear direction, each rebalance can lock in small losses. Over time, these small losses add up. This is volatility decay. ## Example Suppose the underlying asset moves like this over four days: | Day | Asset Price Change | 2x Token Value (starting at $100) | | --- | ------------------ | --------------------------------- | | 1 | +10% | $120.00 | | 2 | -10% | $96.00 | | 3 | +10% | $115.20 | | 4 | -10% | $92.16 | The underlying asset is roughly back where it started (net change of about -1%). But the 2x leveraged token has lost about 7.8%. The higher the leverage, the more pronounced the effect. ## When It Matters Volatility decay is most significant: * In choppy, sideways markets with no clear trend * At higher leverage levels (3x and 4x) * Over longer holding periods In strongly trending markets, compounding works in the holder's favor and can more than offset any decay. ## How Toros Manages It Toros uses optimized rebalancing algorithms that aim to reduce unnecessary trades. Rather than rebalancing on a fixed schedule, the protocol adjusts positions based on how far the effective leverage has drifted from the target. This approach reduces the number of rebalances and limits the impact of decay, though it cannot eliminate it entirely. ## Key Takeaway Leveraged tokens are designed for short to medium-term holds where the trader has a directional view. Holding through extended periods of sideways price action will result in value erosion due to volatility decay. For more on how leveraged tokens work, see the [Overview](/products/overview-1). # Slippage Slippage is the difference between the expected price and the actual execution price of a trade. For leveraged tokens, slippage can occur during minting, burning, and rebalancing. ## When Slippage Occurs ### Minting and Burning When you buy (mint) or sell (burn) a leveraged token, the protocol executes trades on the underlying markets to adjust the position. If the trade size is large relative to available liquidity, the execution price may differ from the quoted price. ### Rebalancing During automated rebalancing, the protocol adjusts positions to maintain the target leverage. These trades also interact with onchain liquidity and can experience slippage, especially during volatile markets when many positions are being adjusted simultaneously. ## What Affects Slippage * **Trade size**: Larger trades tend to have more slippage * **Market liquidity**: Tokens backed by assets with deep liquidity (BTC, ETH) typically have lower slippage than altcoin tokens * **Market conditions**: High volatility periods can increase slippage across all tokens * **Chain**: Liquidity varies across chains. Arbitrum generally has the deepest onchain liquidity for Toros tokens ## How Toros Manages Slippage Toros uses several approaches to minimize slippage: * Optimized trade routing across available liquidity sources * Rebalancing thresholds that avoid unnecessary small trades * Position sizing that accounts for available market depth ## Practical Considerations * For large deposits or withdrawals, slippage may be more noticeable. Consider splitting large trades into smaller amounts. * Check the quoted price and expected slippage shown in the Toros app before confirming a transaction. * Tokens on Arbitrum generally offer the best liquidity and lowest slippage. For more on how leveraged tokens work, see the [Overview](/products/overview-1). # Toros Perpetual Options Toros Perpetual Options are onchain options that run continuously with no expiry dates. They power multiple Toros products including [Protected Leveraged Tokens](/leveraged-tokens/protected-leveraged-tokens), [Covered Call](/options-strategies/covered-call), and [Short Volatility](/options-strategies/short-volatility). Instead of a single upfront premium and a fixed expiry, Perpetual Options use ongoing payments that settle continuously onchain. This removes expiry pressure and the need for manual rolls. ## The Two-Sided Marketplace Perpetual Options operate as a closed-loop, two-sided marketplace. ### Side One: Long-Side Demand (Toros Protected Leveraged Tokens) Users buy Protected Leveraged Tokens through Toros. These positions: * Pay a premium when opening the position * Pay ongoing funding for holding the position * Receive a BTC downside protection floor (strike price) in return ### Side Two: The LP (Covered Call LP) LPs supply WBTC to the Covered Call LP pool. In return: * LPs receive all ongoing payments from long-side users (funding + premiums) * LPs take full BTC downside exposure * LPs give up some BTC upside once the strike price is reached This creates a continuous payout cycle where demand for leveraged BTC exposure pays income to LPs. ## How Perpetual Options Work Perpetual Options behave like a call option that never expires. Instead of one upfront premium, long-side users pay a small ongoing premium and a continuous funding payment. The Covered Call LP receives these payments. This removes expiry pressure and removes the need for manual rolls. The result is a smoother income pattern for LPs and predictable protection costs for long-side users. ## Flow of Funds 1. LP supplies WBTC to the Covered Call LP pool 2. Toros users open a Protected Leveraged Token position 3. Toros users pay a premium and ongoing funding 4. All payments flow directly to the LP 5. LP yield adjusts over time based on market activity and BTC price 6. LP can exit at any time No external leverage. No off-chain activity. Everything is backed 100 percent by WBTC in the contracts. ## LP Payoff Profile The LP payoff resembles a covered call: * **BTC moves sideways**: LP income continues without much change. This is often the most stable range for revenue. * **BTC rises**: Returns flatten once the strike price is hit. LPs keep income but do not track the full BTC rally above that range. * **BTC falls**: Revenue from funding and premiums smooths part of the drawdown, but LPs hold full BTC downside. Summary: * Full BTC downside * Capped BTC upside * Continuous income from long-side demand ## Why the System Needs Both Sides Toros Protected Leveraged Tokens rely on deep LP liquidity. The LP provides the WBTC required to support long-side exposure. Without the LP, long-side users could not open or maintain their leveraged BTC positions. This creates a reinforcing cycle: more Toros demand leads to more LP income, which attracts more LP liquidity, which supports more Toros positions. ## Underlying Infrastructure Toros Perpetual Options use Flat Money contracts at the smart contract level. All positions are fully collateralized with WBTC, non-custodial, and open for inspection onchain. For audit details, see [Security and Audits](/resources/security). ## Products Built on Perpetual Options * [Protected Leveraged Tokens](/leveraged-tokens/protected-leveraged-tokens): leveraged upside with a downside protection floor (long side) * [Covered Call](/options-strategies/covered-call): recurring BTC income strategy (LP side) * [Short Volatility](/options-strategies/short-volatility): range-bound volatility strategy combining Covered Call LP with a BTC short # Covered Call Toros Covered Call provides recurring income on Bitcoin exposure through Toros Perpetual Options. It is built for BTC holders who want recurring income without managing expiries, rolls, or strike selection themselves. ## Payoff Profile ![BTCCOVCALL1X estimated payoff](/files/dwBPS8V1k5RbSKgaKfpx) *Estimated return after 1 month. The covered call earns income when BTC stays near or above its current price, with capped downside below.* ## How It Works The strategy centers on the Toros Covered Call LP, a liquidity pool powered by Perpetual Options. It behaves like covered call exposure on BTC: * Full BTC downside exposure * Capped upside after a defined range * Recurring income from Toros funding and option premium flows * No expiries or manual rolling ## Toros Covered Call Implementation Depositors provide WBTC liquidity to the Covered Call LP. That liquidity powers Toros Perpetual Options and acts as the counterparty to Toros Protected Leveraged Tokens taking the long side. As long-side demand remains active, recurring funding and option premium payments flow into the LP. This creates continuous income on BTC exposure while remaining fully collateralized and fully onchain. The result is designed for holders who want BTC exposure that can earn income in sideways or moderately bullish markets, while accepting capped upside in stronger rallies. ## Available Products | Ticker | Vault Name | Asset | Position | Leverage | Chains | | -------------------------------------------------------------------------------------- | ----------------------- | ------- | -------- | -------- | -------- | | [BTCCOVCALL1X](https://toros.finance/vault/0x2fbadd08ade2e8a24cf1fe3a58fe918336b39a72) | Bitcoin Covered Call 1X | Bitcoin | Long | 1x | Arbitrum | ### BTCCOVCALL1X BTCCOVCALL1X gives BTC covered call style exposure through the Toros Covered Call LP. Key characteristics: * Recurring income on BTC exposure * Revenue from Toros funding and option premium flows * Capped upside in stronger rallies * Full downside exposure to Bitcoin price declines * No expiries or manual rolls * 100 percent WBTC collateral, fully onchain BTCCOVCALL1X charges a **0.1% trading fee** each way, with no management or performance fee. See [Fees](/trading/fees) for the full table. ## Who Is This For The covered call strategy suits holders who: * Want Bitcoin exposure that produces income * Are comfortable trading away some upside for recurring cash flow * Expect range-bound or moderately bullish conditions * Prefer a fully onchain structure with no manual options management # Short Volatility Toros Short Volatility is designed for quieter Bitcoin markets. It performs best when BTC remains within a tighter range and can weaken when BTC begins trending strongly up or down. ## Payoff Profile ![BTCBEARVOL1X estimated payoff](/files/R571ppQ7X4pcQVLqMyin) *Estimated return after 1 month. Maximum profit when BTC stays near its current price. Losses increase as BTC moves further in either direction.* ![Short volatility payoff diagram](/files/2MLr3QJ1jvMasoyFqid7) *The short volatility structure resembles a short straddle: profit in the optimal range, loss on large moves.* ## How It Works This is not a directional BTC product. The objective is to reduce price-direction exposure and focus on Bitcoin volatility instead. In simple terms: * If BTC stays near its current range, the strategy performs best * If BTC moves far in either direction, performance can weaken * The payoff is driven more by volatility conditions than by a simple bullish or bearish BTC view ## Toros Short Volatility Implementation Toros combines two components to build the short volatility strategy: 1. **A position in the Toros Covered Call LP** powered by Perpetual Options 2. **An actively rebalanced BTC short on Aave** to reduce directional exposure The Covered Call LP earns revenue from recurring payments made by Toros Protected Leveraged Token traders. The Aave short is adjusted as conditions change to keep the overall structure more focused on volatility than outright BTC direction. For readers familiar with options, the payoff can resemble a short straddle. Tight ranges and controlled movement tend to help the structure, while strong directional moves can hurt performance and increase rebalancing activity. ## Available Products | Ticker | Vault Name | Asset | Position | Leverage | Chains | | -------------------------------------------------------------------------------------- | -------------------------- | ------- | -------- | -------- | -------- | | [BTCBEARVOL1X](https://toros.finance/vault/0x8c068d7033d66c4aacab25ce8219e5688c60155f) | Bitcoin Bear Volatility 1X | Bitcoin | Short | 1x | Arbitrum | ### BTCBEARVOL1X BTCBEARVOL1X provides onchain BTC volatility exposure designed for quieter, range-bound conditions. Key characteristics: * Holds the Toros Covered Call LP plus an actively rebalanced BTC short on Aave * Reduces directional exposure to focus more on BTC volatility * Performs best when Bitcoin stays within a tighter range * Can lose value when Bitcoin trends strongly up or down * Captures income linked to Toros Protected Leveraged Token activity BTCBEARVOL1X charges a **0.1% trading fee** each way, with no management or performance fee. See [Fees](/trading/fees) for the full table. ## Who Is This For The short volatility strategy suits users who: * Believe Bitcoin may enter a quieter trading period * Want exposure to BTC volatility rather than a simple directional trade * Understand that strong moves in either direction can hurt returns * Prefer an automated, fully onchain structure # Buying When you buy a Toros token, you deposit into a [vault](/resources/glossary#vault) and receive an ERC-20 token in your wallet. That token represents your share of the vault's strategy. ## How to Buy 1. Connect your wallet at [toros.finance](https://toros.finance) and switch to the token's network. 2. Open the token's page and select **Buy**. 3. Choose the asset to pay with and enter an amount. 4. Confirm the transaction in your wallet. You receive the vault token. ## Deposit Assets Each vault accepts specific [deposit assets](/resources/glossary#deposit-asset). When buying, you can pay with a deposit asset or with another supported token on the network. Buying with a deposit asset incurs zero slippage; you only pay the [trading fee](/trading/fees). ## Buying With Other Tokens If you pay with a non-deposit asset, it is swapped into a deposit asset first and then deposited, all in a single transaction. That added swap is the only difference from a deposit-asset buy: it carries its own trading fee and [slippage](/leveraged-tokens/slippage). Non-deposit buys source liquidity from across the chain using [DEX aggregators](/resources/glossary#dex-aggregator) such as 1inch, so larger trades can still execute at competitive prices. ### Slippage Settings When slippage is set to auto, the trade is simulated at the lowest possible slippage, then increased gradually until it can go through. Once it can execute, the transaction is sent to your wallet for approval. You can also choose which DEX aggregators are enabled in trade settings. By default all are enabled, and the best one for the trade is used. # Selling When you sell a Toros token, the vault withdraws its underlying assets and swaps them into the single token you choose to receive. ## How to Sell Because a vault holds a basket of assets, a standard sell takes three steps: 1. **Approve** the withdrawal. 2. **Withdraw** into the vault's underlying basket of assets. 3. **Swap** the basket into your chosen token and receive it. Each sell charges a [trading fee](/trading/fees). ## Liquidity Sells source liquidity from across the network using [DEX aggregators](/resources/glossary#dex-aggregator), so larger trades can execute with low [slippage](/leveraged-tokens/slippage). When slippage is set to auto, the trade is simulated at the lowest possible slippage, then increased gradually until it can go through. Once it can execute, the transaction is sent to your wallet for approval. You can choose which DEX aggregators are enabled in trade settings. By default, any enabled aggregator can be used so the trade goes through at the selected slippage. ## On-Demand Sells Some vaults hold only part of their value as instantly **withdrawable liquidity**. A sell larger than the available withdrawal liquidity can still be completed with an **on-demand sell**. An on-demand sell places a sell order, and the vault automatically creates the required liquidity and completes the sell. You place the order and wait; no further action is needed. It uses the same flow as [stop orders](/trading/stop-orders): a single approve transaction instead of the three steps above. # Stop Orders Toros offers automated trading similar to limit orders called stop orders. A stop order triggers when the price hits a level, and then becomes a market order. ## Fees As a stop order becomes a market order when triggered, the fees for stop orders are the same as you would buying or selling normally. There's no discount. See [Fees](/trading/fees) for trading fee details. Since stop orders are automated, an additional small fee is taken out to pay for gas called a *keeper fee* to pay for the smart contract *keeper* that executes the order for you. ## Stop Sells Currently Toros offers only stop sells on Arbitrum and Ethereum mainnet. You can schedule a sell to happen in the future when the underlying asset's price goes above or below the level you choose. If set to a lower limit price, the stop sell behaves like a stop loss. If set to a higher limit price, the stop sell becomes a profit take. # Fees Fees for each product are shown in the Stats section of each token. **Leveraged tokens, options tokens, and 1X tokens charge trading fees only**: there is no management fee, no streaming fee, and no performance fee. The fee is taken when you buy and when you sell; nothing is deducted while you simply hold. Index Strategies are the exception and carry a performance fee; see [Index Strategies](#index-strategies) below. A trading fee is incurred when the token is bought or sold. For every current leveraged and options token the entry and exit fees are equal, so the table below lists a single rate that applies **in each direction**: a token shown at 0.2% costs roughly 0.2% to buy and 0.2% to sell (about 0.4% for a full round trip). Where a product charges a different fee on the way in than on the way out, the entry and exit fees are shown separately. Trading fees scale with leveraged multipliers, where lower leverage may have lower fees than higher leverage tokens. Typically: * 1X long : 0.1% trading fee * 2X long, 3X long, 1X short, 2X short: 0.2% trading fee * 4X long: 0.25% trading fee Fees for leveraged tokens are uniform, while options tokens are determined by the type of options product. If the options product is paying a premium, that premium is reflected in the trading fee. Here are the fees for the current derivatives products: | Token | Trading Fee | | --------------------- | ----------- | | BTC1X | 0% | | BTCBULL2X | 0.2% | | BTCBULL3X | 0.2% | | BTCBULL4X | 0.25% | | BTCBEAR1X | 0.2% | | BTCBEAR2X | 0.2% | | BTCBULLP1X | 0.66% | | BTCBULLP2X | 1.33% | | BTCBULLP3X | 2% | | BTCCOVCALL1X | 0.1% | | BTCBEARVOL1X | 0.1% | | ETH1X | 0% | | ETHBULL2X | 0.2% | | ETHBULL3X | 0.2% | | ETHBULL4X | 0.25% | | ETHBEAR1X | 0.2% | | ETHBEAR2X | 0.2% | | GOLD1X | 0.1% | | GOLDBULL2X | 0.2% | | GOLDBULL3X | 0.2% | | GOLDBEAR1X | 0.2% | | XRP1X | 0.1% | | XRPBULL2X | 0.2% | | XRPBULL3X | 0.2% | | XRPBEAR1X | 0.2% | | BNB1X | 0.1% | | BNBBULL2X | 0.2% | | BNBBEAR1X | 0.2% | | SOL1X | 0.1% | | SOLBULL2X | 0.2% | | SOLBULL3X | 0.2% | | SOLBEAR1X | 0.2% | | SOLBEAR2X | 0.2% | | DOGE1X | 0.1% | | DOGEBULL2X | 0.2% | | DOGEBEAR1X | 0.2% | | LINK1X | 0.1% | | LINKBULL2X | 0.2% | | LINKBEAR1X | 0.2% | | HYPE1X | 0.1% | | HYPEBULL2X | 0.2% | | HYPEBULL3X | 0.2% | | HYPEBEAR1X | 0.2% | | SUI1X | 0.1% | | SUIBULL2X | 0.2% | | SUIBULL3X | 0.2% | | SUIBEAR1X | 0.2% | | AAVEBULL2X | 0.2% | | AAVEBEAR1X | 0.2% | | PUMP1X | 0.1% | | PUMPBULL2X | 0.2% | | PUMPBEAR1X | 0.2% | | CRV1X | 0.1% | | CRVBULL2X | 0.2% | | CRVBEAR1X | 0.2% | | SLVBULL2X | 0.2% | | SLVBULL3X | 0.2% | | SLVBEAR1X | 0.2% | | GOLDBULL2X (HyperEVM) | 0.2% | | GOLDBULL3X (HyperEVM) | 0.2% | | GOLDBEAR1X (HyperEVM) | 0.2% | | NVDABULL2X | 0.2% | | NVDABULL3X | 0.2% | | NVDABEAR1X | 0.2% | | NDXBULL2X | 0.2% | | NDXBULL3X | 0.2% | | NDXBEAR1X | 0.2% | | SP500BULL2X | 0.2% | | SP500BULL3X | 0.2% | | SP500BEAR1X | 0.2% | ## Index Strategies [Index Strategies](/products/index-strategies) use a different fee model from leveraged and options tokens. All Stacks charge a **0.05% entry fee** and a **5% performance fee**, with **no exit fee** and a **24-hour lock** after deposit before tokens can be sold. # TradingView Charts Toros now includes built-in [TradingView](https://www.tradingview.com/) charts on all leveraged token pages. TradingView is one of the most widely used charting tools for traders. It lets you zoom in on price action, add technical indicators, and do ratio analysis between different assets, all inside your browser. On Toros, you can now use many of these tools directly. Just open any leveraged token page and you'll see the interactive chart panel. *** ## Quick Example: Reading a Basic Chart Let's say you're checking out **ETHBULL2x**. ### Step 1: Maximize the Chart Click the **full screen icon** (top right of the chart) to open the TradingView panel in full view. ![ETHBULL2X token page with the full screen icon circled in the top-right corner of the chart](/files/mge9nil0OqDSQLx6OtB6) ### Step 2: Explore the Chart Now that you're in full screen, try the following: * **Change the timeframe**: select 1H, 1D, or 1W from the toolbar at the top. * **Hover your mouse over a candle**: the OHLC info will appear at the top of the chart. * **Scroll left**: move through historical price action with your scroll wheel or trackpad. > **Tip:** If the chart looks off, just select **"Reset Chart"** to snap everything back to the default view. *** ## Try Ratio Analysis (Intermediate) Once you're comfortable reading a chart, you can compare two assets using the ratio analysis feature. Here's how to walk through it. ### Step 1: Open a Token Page Visit any leveraged token page (e.g. [ETHBULL2x](https://toros.finance/vault/0x696f6d66c2da2aa4a400a4317eec8da88f7a378c)). ### Step 2: Add Another Asset for Comparison Click the **Compare** button (e.g. the `+` icon next to the token symbol). This opens a dropdown. Search for a second token or market, for example `SOLUSD`. Then click on it. The chart will automatically switch to a ratio view, **ETHBULL2x / SOLUSD**: * When the line goes **up**, ETHBULL2x is outperforming SOL. * When the line goes **down**, SOL is outperforming ETHBULL2x. ![Ratio chart showing ETHBULL2X ARB / SOLUSD](/files/oEK5nmBerjZIxFpWgzcT) *** ## Add Indicators (Optional) You can add common indicators like **RSI** or **MACD** to apply further analysis. Click the **Indicators** button in the toolbar and search for the one you want. The indicator panel will show up below the main chart and gives extra context for timing entries or spotting momentum shifts. ![Ratio chart with RSI indicator panel displayed below](/files/uDYYKzikcnFS6RAxbJyh) *** ## Reset if Needed If the chart gets messy or looks weirdly scaled, there will always be a way to clean up everything you've added and reset to the default view. *** ## Summary Every Toros leveraged token page comes with a built-in TradingView chart, with no setup needed and no visibility restrictions. Use it to help with simple price checks or deeper technical analysis, all without a separate login. Everything runs natively on the Toros platform. # Price Alerts You can be alerted of price changes to your positions when you're not on the app with email alerts. You'll be sent an email with the following events: * Sudden rise or fall in any token you hold * Stop orders are executed # Achievements Each achievement in the achievements page has a maximum of 10 levels. Current achievements include: * Token types bought * Balance level * Lifetime volume * Profitable trades Additionally, you can see your position in the global leaderboard on the achievements page. # Leaderboard Placement on the leaderboard is based on profit/loss. Leaderboard seasons start and end every quarter (3 month periods). The top 3 accounts at the end of each season will win an NFT commemorating their final place. The leaderboard comes with the following ranks: * Bronze - Bottom 20% * Silver - Bottom 20-40% * Gold - Bottom 40-60% * Diamond - Top 20-40% * Master - Top 20-10% * Grandmaster - Top 10% excluding top 10 * Elite - Top 10 # FAQ ## General ### What is Toros? Toros is a DeFi protocol that provides automated, tokenized strategies. All Toros products are ERC-20 tokens that maintain their strategy through onchain management. Products include leveraged tokens, 1x tokens, options strategies, and index strategies. ### What chains does Toros support? Toros is deployed on Arbitrum, Ethereum, and HyperEVM. Not all products are available on every chain. Arbitrum has the widest selection of crypto leveraged tokens, HyperEVM hosts equity and commodity leveraged tokens via Hyperliquid, and Ethereum hosts Index Strategies (tokenized equity baskets via Ondo). ### What do I need to use Toros? A compatible Web3 wallet (such as Rabby) with funds on a supported chain. Connect your wallet at [toros.finance](https://toros.finance) to browse and invest in products. ### Are Toros tokens transferable? Yes. All Toros products are standard ERC-20 tokens. You can hold them in any compatible wallet, transfer them, or use them in other DeFi protocols that accept ERC-20 tokens. ## Leveraged Tokens ### Can I get liquidated holding a leveraged token? Toros leveraged tokens use automated rebalancing to reduce effective leverage as prices decline. This significantly reduces liquidation risk compared to managing a leveraged position manually. Toros reports no forced liquidation events in over 4 years of operation. ### What is volatility decay? Volatility decay is the gradual erosion of value that happens in sideways or choppy markets. Each rebalance during a range-bound period can lock in small losses that compound over time. This is the main risk of holding leveraged tokens through extended periods without a clear trend. See [Volatility Decay](/leveraged-tokens/volatility-decay) for a worked example. ### How long should I hold a leveraged token? Leveraged tokens are designed for short to medium-term positions where you have a directional view. They are not designed for passive, long-term holding. In trending markets, compounding works in your favor. In choppy markets, volatility decay works against you. ### What is the difference between money market-based and perpetuals-based tokens? Money market-based tokens use Aave lending loops. Perpetuals-based tokens use perpetual futures: GMX on Arbitrum or Hyperliquid on HyperEVM. The mechanism affects cost structure (interest vs funding rates) and which assets are available. See [Money Market-Based](/leveraged-tokens/money-market-based) and [Perpetuals-Based](/leveraged-tokens/perpetuals-based) for details. ### What are Protected Leveraged Tokens? Protected Leveraged Tokens (PLTs) combine leveraged upside with a downside protection floor built using Toros Perpetual Options. They cost more than standard leveraged tokens (due to option premiums) but cap losses during drawdowns. See [Protected Leveraged Tokens](/leveraged-tokens/protected-leveraged-tokens). ## 1x Tokens ### Why would I use a 1x token instead of just buying the asset? 1x Tokens provide synthetic spot exposure to assets that are difficult to access natively on Arbitrum. If an asset has no native spot market on Arbitrum or liquidity is shallow, a 1x token lets you hold exposure as a simple ERC-20 token without bridging. ### Do 1x tokens have costs? Yes. Because 1x tokens use GMX perpetual futures under the hood, they are subject to funding payments, trading fees, and minor tracking differences vs the spot price. Over long periods, these costs can add up. ## Options Strategies ### What is the Covered Call strategy? The Toros Covered Call provides recurring income on Bitcoin exposure using Perpetual Options. It behaves like a covered call: full downside, capped upside, and ongoing premium income. It is designed for sideways to moderately bullish markets. See [Covered Call](/options-strategies/covered-call). ### What is the Short Volatility strategy? The Short Volatility strategy profits when Bitcoin stays range-bound. It combines a Covered Call LP position with an Aave BTC short to reduce directional exposure. It can lose value when BTC trends strongly in either direction. See [Short Volatility](/options-strategies/short-volatility). ## Index Strategies ### What is an Index Strategy? An Index Strategy is a thematic basket of tokenized equities bundled into a single ERC-20 token. Toros offers them as Stacks, for example The Semiconductor Stack (CHIP). Each gives proportional exposure to a curated set of stocks through one trade, with weighting and rebalancing handled automatically. See [Index Strategies](/products/index-strategies). ### How do Index Strategies hold stocks? They hold [Ondo Stocks](https://ondo.finance/global-markets) tokenized equities, tokenized versions of real listed stocks that provide economic exposure to the underlying. Because they track real equities, they follow market hours and can pause outside trading sessions, unlike 24/7 crypto products. They are also subject to eligibility and regional access rules and are not available in all jurisdictions. ## Trading ### How do I buy a Toros token? Connect your wallet at [toros.finance](https://toros.finance), select a token, and choose an asset to buy with. If you use a deposit asset, the buy has zero slippage. If you use another token, it is swapped into a deposit asset first via a DEX aggregator in a single transaction. See [Buying](/trading/buying). ### How do I sell a Toros token? Selling withdraws the underlying assets from the vault and swaps them into your chosen token. This involves approving, withdrawing, and swapping in a multi-step transaction. Some vaults with limited withdrawal liquidity use on-demand sells, which execute automatically after the order is placed with no further user action. See [Selling](/trading/selling). ### What fees do Toros tokens charge? A trading fee is charged on every buy and sell. Fee rates vary by product and leverage level. Leveraged token fees are uniform within their tier, while options token fees reflect the cost of the premium. Fee details for each token are shown on its page. See [Fees](/trading/fees). ### What are stop orders? Stop orders let you schedule an automated sell when the underlying asset's price hits a level you choose. They execute as market orders with the same trading fees as a normal sell, plus a small keeper fee for gas. Currently available on Arbitrum and Ethereum. See [Stop Orders](/trading/stop-orders). ## Security ### Has Toros been audited? Toros is built on the Chamber protocol (formerly dHEDGE). The smart contracts powering Toros vaults have been covered by multiple independent audits from firms including Sherlock, CertiK, and independent auditors. See [Security and Audits](/resources/security) for the full audit timeline. ### Is there a bug bounty program? Yes. Chamber maintains a bug bounty program on Immunefi with rewards up to $50,000. See [Security and Audits](/resources/security) for details. # Security & Audits Toros is built on the Chamber protocol (formerly dHEDGE). The smart contracts that power Toros vaults have been covered by multiple independent security audits, and the protocol maintains active bug bounty programs. No publicly known exploits or security incidents have affected Chamber or Toros. ## Audit Timeline | Date | Auditor | Toros Relevance | Report | | -------- | -------- | -------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Sep 2025 | Sherlock | Vault core and Aave V3 integrations | [PDF](https://files.gitbook.com/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Ff03kK69OTEEthfwi6VoC%2Fuploads%2FoacAphKLdPdHKiU9sPIw%2FSherlock%20Audit%20%E2%80%93%20mStable%20Pendled%20sUSDe%20\(via%20dHEDGE\).pdf) | | Jan 2025 | Santipu | Aave V3 lending loops (used by money market-based leveraged tokens) | [GitHub](https://github.com/santipu03/santipu03/blob/main/private-audits/dHEDGE_Aave.md) | | Jan 2025 | Santipu | GMX perpetual futures integration (used by leveraged tokens and 1x tokens) | [GitHub](https://github.com/santipu03/santipu03/blob/main/private-audits/dHEDGE_GMX.md) | | Oct 2024 | Santipu | Single-asset withdrawal logic (used when exiting Toros vaults) | [GitHub](https://github.com/santipu03/santipu03/blob/main/private-audits/dHEDGE_SAW.md) | | Jun 2024 | Sherlock | Vault core contracts and protocol integrations | [PDF](https://files.gitbook.com/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Ff03kK69OTEEthfwi6VoC%2Fuploads%2Fo3epQZwV9tbnGp8EclE2%2FSherlock%20dhedge-audit-report.pdf) | | Jul 2021 | CertiK | V2 core contracts (foundation of current Toros infrastructure) | [CertiK](https://skynet.certik.com/projects/dhedge) | For the full Chamber security documentation, see [docs.chamberfi.com/security](https://docs.chamberfi.com/security). ## Perpetual Options Audit (Flat Money) Toros Perpetual Options use [Flat Money](https://flat.money) contracts at the smart contract level. The perpetual options contracts have been audited independently through a Sherlock private audit contest. | Date | Auditor | Scope | Report | | -------- | -------------------------- | -------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Jan 2025 | Sherlock (private contest) | Flat Money perpetual options contracts | [PDF](https://files.gitbook.com/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6jxnGsSeYJfPRFFT97Bn%2Fuploads%2FM9i0snPCGjtRP5KASAyw%2F2025.03.07%20-%20Final%20-%20Flat%20Money%20Private%20Audit%20Contest%20Report.pdf?alt=media\&token=3b2e2ebf-ac03-44af-923a-1d124393d749) | Flat Money also maintains an active bug bounty on [Sherlock](https://audits.sherlock.xyz/bug-bounties/1) with rewards up to $50,000. ## Bug Bounty Chamber maintains an active bug bounty program on [Immunefi](https://immunefi.com/bug-bounty/dhedge/). | Severity | Reward | | -------- | -------------------------------------------------- | | Critical | $2,000 to $50,000 (0.1% of affected funds, capped) | | High | $1,000 | ### Scope PoolFactory-linked contracts on all supported chains (Arbitrum, Ethereum, HyperEVM). Includes vault implementation contracts (PoolLogic, PoolManagerLogic), contract and asset guards, and price aggregator contracts. ### Requirements * Proof of concept required * Testing must use local forks (no mainnet or testnet) * Rewards paid in USDC ## Vault Permissions Toros vault managers can only interact with whitelisted contracts and assets. This prevents unauthorized transactions with depositor funds. New protocol integrations are added through DAO-governed whitelisting. ## Smart Contract Risk Toros products interact with multiple DeFi protocols. Each integration introduces additional smart contract risk: * **Aave**: used by money market-based leveraged tokens for lending and borrowing * **GMX**: used by perpetuals-based leveraged tokens and 1x tokens on Arbitrum for futures positions * **Hyperliquid**: used by HyperEVM-deployed leveraged tokens for perpetual futures positions * **Flat Money**: provides the smart contracts powering [Toros Perpetual Options](/options-strategies/perpetual-options), which underpin Protected Leveraged Tokens, Covered Call, and Short Volatility strategies Users should evaluate their risk tolerance before depositing, considering that a vulnerability in any underlying protocol could affect Toros products that depend on it. # Protocol Operations This page covers how Toros vaults are managed, how rebalancing works, and what price oracles are used across different products. ## Vault Management Toros vaults are built on the Chamber protocol (formerly dHEDGE). Each vault has a manager with defined permissions. * **Chamber multisig** controls vault configuration and whitelisted contracts * **Trader account** executes the actual trades: rebalancing, position adjustments, and strategy operations * Vault managers can only interact with **whitelisted contracts and assets**, preventing unauthorized transactions with depositor funds * New protocol integrations are added through DAO-governed whitelisting The trader account operates within the constraints set by the multisig. It cannot withdraw funds, change vault parameters, or interact with non-whitelisted contracts. ## Rebalancing Toros leveraged tokens use automated rebalancing to maintain their target leverage ratio. Rebalancing is not on a fixed schedule; it is triggered based on how far the effective leverage has drifted from the target. When the underlying asset price moves: * **Price rises (long position)**: Effective leverage decreases. The protocol increases exposure to restore the target ratio. * **Price falls (long position)**: Effective leverage increases. The protocol reduces exposure to lower risk. This drift-based approach reduces the number of unnecessary trades compared to a fixed daily rebalance, which helps limit [volatility decay](/leveraged-tokens/volatility-decay) and slippage costs. ### Rebalancing Mechanism by Product Type | Product Type | Rebalancing Mechanism | | ----------------------------------- | ----------------------------------------------------------------------------------- | | Money market-based leveraged tokens | Adjusts Aave borrow/collateral positions | | Perpetuals-based leveraged tokens | Adjusts perpetual futures position size on GMX (Arbitrum) or Hyperliquid (HyperEVM) | | Protected Leveraged Tokens | Leverage and protection managed through Toros Perpetual Options | ## Price Oracles Toros products use different price oracles depending on the underlying mechanism and asset. Accurate price feeds are critical for rebalancing, minting, and burning tokens at fair value. ### Oracle Sources | Oracle | Description | | ---------- | -------------------------------------------------------------------------------------- | | Chainlink | Industry-standard decentralized oracle network with broad asset coverage | | Pyth | High-frequency oracle with sub-second updates for faster price resolution | | GMX Oracle | GMX's internal oracle combining multiple price feeds for futures pricing | | TWAP | Time-weighted average price calculations that smooth out short-term price manipulation | Different products may use different oracles depending on the underlying protocol and asset. Toros products typically use two or more oracle sources for redundancy and accuracy. Oracle selection is part of the vault configuration managed by the Chamber multisig. ### Oracle Risks * **Stale prices**: If an oracle fails to update, positions may be rebalanced or valued using outdated prices * **Manipulation**: TWAP and multi-source oracles reduce but do not eliminate manipulation risk * **Dependency**: Each oracle introduces a trust assumption on the oracle provider's infrastructure ## Trust Assumptions Using Toros products involves the following trust assumptions: * **Smart contracts**: Toros vaults, Chamber protocol, and underlying protocols (Aave, GMX, Hyperliquid, Flat Money) function as intended * **Vault manager**: The trader account executes rebalancing correctly within its whitelisted permissions * **Oracles**: Price feeds are accurate and timely * **Governance**: The Chamber multisig and DAO governance act in users' interest when updating parameters For audit details and bug bounty information, see [Security and Audits](/resources/security). # Brand Kit ## Logo Assets Official Toros logo assets in black and white variants. {% hint style="info" %} White logo variants are designed for dark backgrounds and may not be visible against a white background. {% endhint %} ### Logo Mark ![Toros Logo Mark - Black](/files/Q0zT9wt80ivmX8PXafHp) ![Toros Logo Mark - White](/files/1NJcx01MMqWQ2yL8unuc) ### Word Mark ![Toros Word Mark - Black](/files/4EPuVP6FHuKs6do2EaRo) ![Toros Word Mark - White](/files/VopkKNwGXDzwgvFJzUsI) ### Extended Word Mark ![Toros Extended Word Mark - Black](/files/Wihv8JUuesjpm9vPwcZH) ![Toros Extended Word Mark - White](/files/ZAt6xA3dSUjKeivJJnSW) ## Typography * **Inter**: primary UI font for product UI, tables, controls, and body copy * **Raleway**: secondary display font for headings and branded moments ## Brand Colors | Token | Hex Code | Usage | | ------------------- | --------- | -------------------------------------------------------- | | App Theme Black | `#000000` | Browser/PWA theme color | | App Surface | `#12171F` | Primary app background and dark surfaces | | Primary Text | `#DEE3ED` | Main text on dark surfaces | | Secondary Text | `#CCD2DC` | Supporting text and lighter neutral UI text | | Divider / Border | `#657792` | Dividers, separators, muted outlines | | Brand Blue | `#5790E4` | Primary brand actions and solid buttons | | Brand Blue Hover | `#70AAEA` | Hover and active brand accent | | Brand Tint | `#C6DDF7` | Light blue text or outline accents | | Success Green | `#47A06C` | Success states and positive indicators | | Success Green Hover | `#6CBC87` | Success hover and bright states | | Warning Amber | `#D7892B` | Warning states and caution highlights | | Danger Red | `#DF5454` | Errors, destructive actions, and risk states | | White | `#FFFFFF` | High-contrast content and light backgrounds where needed | ## Usage Guidance * Use the **dark-first** palette for app-related visuals and screenshots. * Use **blue accents** for primary calls to action and interactive emphasis. * Keep logos **monochrome** on dark or light backgrounds. * Reserve success green, warning amber, and danger red for state communication rather than general branding. # Glossary Key terms used throughout the Toros documentation. ## A ### Aave A decentralized lending and borrowing protocol. Toros uses Aave to build [money market-based leveraged tokens](/leveraged-tokens/money-market-based) through lending loops. ### Asset Guard A smart contract that restricts which operations a Toros vault manager can perform on a specific asset or protocol. Guards enforce whitelisted interactions and prevent unauthorized transactions with depositor funds. ## B ### Bull / Bear Directional labels for Toros tokens. Bull tokens profit when the underlying asset rises (long). Bear tokens profit when the underlying asset falls (short). For example, BTCBULL3X is a 3x long Bitcoin token. ## C ### Chamber The underlying protocol (formerly dHEDGE) that powers Toros vaults. Chamber provides the vault infrastructure, permission system, and smart contract framework. Toros is built on top of Chamber. See [docs.chamberfi.com](https://docs.chamberfi.com) for protocol-level documentation. ### Collateral Assets deposited to back a position. In money market-based leveraged tokens, collateral is deposited into Aave to borrow against. In Perpetual Options, WBTC is the collateral backing the Covered Call LP. ### Covered Call An options strategy where the holder earns income by selling upside exposure above a strike price. In Toros, the [Covered Call LP](/options-strategies/covered-call) earns funding and premium payments from Protected Leveraged Token holders. ### Covered Call LP The liquidity pool that acts as the counterparty to Protected Leveraged Token holders in the [Toros Perpetual Options](/options-strategies/perpetual-options) marketplace. LPs supply WBTC and earn ongoing income from funding and premium fees. ## D ### Deposit Asset An asset that a Toros vault accepts directly for minting. Buying with a deposit asset incurs zero slippage. Non-deposit assets are swapped into a deposit asset first via a DEX aggregator. See [Buying](/trading/buying). ### DEX Aggregator A service that routes trades across multiple decentralized exchanges to find the best price. Toros uses DEX aggregators such as 1inch when buying with non-deposit assets or selling vault tokens. See [Buying](/trading/buying) and [Selling](/trading/selling). ### Delta-Neutral A strategy with no directional exposure to the underlying asset's price. Returns come from sources other than price movement, such as funding rates or yield farming. ## E ### ERC-20 A standard interface for fungible tokens on Ethereum and EVM-compatible chains. All Toros products are ERC-20 tokens, meaning they can be held in any compatible wallet and transferred freely. ## F ### Funding Rate A periodic payment between long and short positions. In perpetual futures markets, longs typically pay shorts in bullish conditions. Funding rates are a cost for [perpetuals-based leveraged tokens](/leveraged-tokens/perpetuals-based) and [1x tokens](/products/1x-tokens). In the [Toros Perpetual Options](/options-strategies/perpetual-options) marketplace, Protected Leveraged Token holders pay ongoing funding to the Covered Call LP as part of maintaining their downside protection. ## G ### GMX A decentralized perpetual futures exchange. Toros uses GMX on Arbitrum to build [perpetuals-based leveraged tokens](/leveraged-tokens/perpetuals-based) and [1x tokens](/products/1x-tokens); HyperEVM-deployed tokens use Hyperliquid instead. ## I ### Index Strategy A thematic basket of tokenized equities bundled into a single ERC-20 token. Toros offers index strategies as Stacks, each tracking a specific theme with automated weighting and rebalancing. See [Index Strategies](/products/index-strategies). ## K ### Keeper A smart contract that automatically executes scheduled orders on behalf of users. Keepers handle stop orders and charge a small gas fee (keeper fee) for execution. See [Stop Orders](/trading/stop-orders). ## L ### Lending Loop The mechanism used by money market-based leveraged tokens. Collateral is deposited into Aave, stablecoins are borrowed against it, the borrowed amount is used to buy more collateral, and the process repeats until the target leverage is reached. See [Money Market-Based](/leveraged-tokens/money-market-based). ### Leverage Amplified exposure to an asset's price movement. A 2x leveraged token targets roughly twice the price movement of the underlying asset. ### Liquidation The forced closure of a leveraged position when collateral falls below the required threshold. Toros leveraged tokens use automated rebalancing to reduce effective leverage as prices decline, significantly reducing liquidation risk. Toros reports no forced liquidation events in over 4 years of operation. ### Liquidity Pool (LP) A pool of tokens locked in a smart contract that provides liquidity for trading, lending, or other DeFi operations. In Toros, the Covered Call LP is a key component of the Perpetual Options marketplace. ### Long / Short A long position profits when the asset price rises. A short position profits when it falls. Toros offers both long (bull) and short (bear) leveraged tokens. ## M ### Market-Neutral A strategy designed to generate returns regardless of whether the market goes up or down. Returns typically come from funding rates, yield farming, or arbitrage rather than directional price exposure. ### Money Market A lending and borrowing protocol like Aave. Toros uses money markets to create leveraged positions by depositing collateral and borrowing against it in a loop. See [Money Market-Based](/leveraged-tokens/money-market-based). ### Minting / Burning The process of creating (minting) or redeeming (burning) Toros tokens. When you buy a Toros token, the protocol mints a new token and opens the corresponding position. When you sell, the token is burned and the position is unwound. ### Multisig A wallet that requires multiple signatures (approvals) to execute a transaction. The Chamber multisig controls vault configuration and whitelisted contracts for Toros vaults. See [Protocol Operations](/resources/protocol-operations). ## O ### On-Demand Sell A sell order for vaults with limited immediate withdrawal liquidity. The order triggers the vault to create the required liquidity, and the sell completes automatically with no further user action. See [Selling](/trading/selling). ### Ondo Stocks A provider of tokenized equities, tokenized versions of real listed stocks. Toros [Index Strategies](/products/index-strategies) hold Ondo Stocks tokens to give onchain exposure to public-market assets. See [Ondo Stocks](https://ondo.finance/global-markets). ### Oracle A service that provides external data (typically asset prices) to smart contracts onchain. Toros products use oracles from Chainlink, Pyth, GMX, and TWAP mechanisms. See [Protocol Operations](/resources/protocol-operations). ## P ### Premium A payment made for options exposure. In Toros Perpetual Options, Protected Leveraged Token holders pay an ongoing premium (rather than a single upfront cost) to maintain their downside protection. These premiums flow to the Covered Call LP. ### Perpetual Options Onchain options with no expiry date. Instead of a single upfront premium, users pay ongoing funding and premium fees. See [Toros Perpetual Options](/options-strategies/perpetual-options). ### Perpetual Futures (Perps) Futures contracts with no expiry date. Traders can hold long or short positions indefinitely, paying or receiving funding rates. Toros uses perps on GMX (Arbitrum) and Hyperliquid (HyperEVM) to build some leveraged tokens. ### Protection Floor The price level below which a [Protected Leveraged Token](/leveraged-tokens/protected-leveraged-tokens) stops losing value. The floor is established through Perpetual Options and depends on the current strike price. ## R ### Rebalancing The automated process of adjusting a leveraged token's position to maintain its target leverage ratio. Toros rebalances based on how far the effective leverage has drifted from the target, rather than on a fixed schedule. ## S ### Stack The product name for a Toros [Index Strategy](/products/index-strategies): a single thematic basket of tokenized equities, such as The Semiconductor Stack (CHIP). ### Stop Order An automated order that triggers when a token's underlying asset hits a specified price, then executes as a market order. Currently available as stop sells on Arbitrum and Ethereum. See [Stop Orders](/trading/stop-orders). ### Slippage The difference between the expected price and actual execution price of a trade. Can occur during minting, burning, or rebalancing. See [Slippage](/leveraged-tokens/slippage). ### Strike Price The price level that defines the boundary of an options position. In Protected Leveraged Tokens, the strike price determines the protection floor. In the Covered Call LP, upside is capped above the strike price. ## T ### Tokenized Equity An onchain token that provides economic exposure to a real listed stock rather than direct share ownership. Toros [Index Strategies](/products/index-strategies) hold tokenized equities issued by Ondo Stocks. ### TVL (Total Value Locked) The total value of assets deposited in a protocol or vault. A common measure of the size and adoption of DeFi products. ### TWAP (Time-Weighted Average Price) A pricing method that averages an asset's price over a time window. Used to smooth out short-term price manipulation in oracle feeds. ## V ### Volatility Decay The gradual erosion of value that affects leveraged tokens in sideways or choppy markets. Caused by repeated rebalancing locking in small losses during range-bound price action. See [Volatility Decay](/leveraged-tokens/volatility-decay). ### Vault A smart contract that holds assets and executes a strategy automatically. Each Toros product is a vault that users deposit into by minting the corresponding ERC-20 token. ### Vault Token The ERC-20 token you receive when depositing into a Toros vault. It represents your share of the vault's assets. The token value changes as the underlying strategy performs. You redeem (burn) the vault token to withdraw your share. ## W ### Withdrawal Liquidity The amount of liquidity available for immediate withdrawal from a Toros vault. Sells larger than the available withdrawal liquidity use an on-demand sell. See [Selling](/trading/selling). ### WBTC (Wrapped Bitcoin) An ERC-20 token backed 1:1 by Bitcoin. Used as collateral in the Toros Perpetual Options marketplace and Covered Call LP. ### Whitelisting The process of approving specific contracts and assets that a Toros vault manager can interact with. Prevents unauthorized transactions with depositor funds. Managed through Chamber DAO governance.