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 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 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 and 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.

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.

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.

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.

How do Index Strategies hold stocks?

They hold Ondo 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, 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.

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.

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.

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.

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 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 for details.