What Are Leveraged Tokens (LT)?
Leveraged Tokens (LT) are derivative products that provide leveraged exposure to underlying assets without margin requirements or liquidation risks. Ideal for short-term investments in trending markets, they simplify leveraged trading by eliminating complex position management.
Bybit’s Leveraged Tokens Explained
Each LT on Bybit represents a basket of perpetual contract positions. For example:
- BTC3L: A basket of BTCUSDT perpetual contracts (long) valued at ~254.866 BTC, aiming for 3x leveraged returns.
Key Concepts
Net Asset Value (NAV)
NAV reflects the real-time value of an LT, tracking the underlying perpetual market’s price movements.
Example: A 1% rise in BTCUSDT price increases BTC3L’s NAV by ~3%.
Price vs. NAV: Why the Difference?
- NAV: Calculated from perpetual contract prices.
- Spot Price: Determined by market supply/demand, causing minor deviations.
LT Naming Conventions
| Token | Meaning |
|--------|---------|
| BTC3L | 3x long BTCUSDT perpetual contracts |
| BTC3S | 3x short BTCUSDT perpetual contracts |
Trading Mechanics
Account Requirements
- Traded via Bybit’s Unified Trading Account.
- KYC Mandatory: Personal/Enterprise verification required (Guide).
Fees & Limits
- Order Price Limits: ±10% of the last traded price.
- NAV Deviation Cap: ±5% for order execution.
- Position Limits: Vary by token; see Bybit’s LT Hub.
👉 Explore Bybit’s LT Trading Strategies
Rebalancing & Risks
Rebalancing Mechanism
Automatically adjusts perpetual positions to maintain target leverage (e.g., 3x for BTC3L within [2x–4x] range). Learn more: Rebalancing Guide.
Risks
- No Liquidations: But NAV can drop to zero irreversibly.
- No Fixed Supply: Tokens are minted/burned based on user demand.
FAQs
1. Can I withdraw LTs?
No. Withdrawals are currently unsupported.
2. How do I check LT trade history?
Navigate to Orders & Trades → Spot Orders → Order History.
3. Where are rebalancing records?
Click the Leverage icon next to a trading pair → Rebalancing History.
4. What’s the difference between LTs and derivatives?
LTs simplify leveraged exposure without margin management. Full comparison here.
5. Are there order size limits?
Yes. Refer to LT Order Limits.
Pro Tips
- Short-Term Focus: LTs excel in volatile, directional markets.
- Monitor NAV: Track deviations for optimal entry/exit points.
- KYC First: Ensure verification to avoid trading restrictions.
Bybit’s Leveraged Tokens merge simplicity with high-potential returns—ideal for traders avoiding margin complexities. Start exploring today!