Leveraged tokens provide simplified leveraged exposure to crypto so you do not have to worry about managing collateral, funding rates, margin management, and liquidation. They are intended to maintain long or short 2x or -3x exposure to cryptoassets such as Bitcoin or Ether on a daily basis. This means that if Bitcoin increases by 3% in a single day then a long leveraged token like BTC3XLONG will increase by 9% and conversely a short leveraged token like BTC3XSHORT will decrease by 9% on the same day.
Amun's leveraged tokens provide this exposure through entering and exiting of perpetual contracts on various crypto exchanges. In order to ensure best execution for you and diversify the financial and operational risks arising from dealing with third party entities, we use multiple futures exchanges for the pricing of the minting and burning of leveraged tokens and the hedging of the exposure.