Learn
What is a leverage token?
One token that holds a leveraged long or short position on one market. You hold the token; there is no account to manage.
What it holds
A leverage token holds one position on one market through Hyperliquid: long or short, at the leverage its creator set at launch, up to the most that market allows.
The position sits in the token’s own vault, and Koturo’s keeper runs it. The token’s value is the vault’s value, divided among the tokens.
How its leverage works
A leverage token can be launched at any whole step from 1× to 20×, long or short, up to its market’s own limit on Hyperliquid. Bitcoin, ether, the largest US stocks, gold and oil go up to 20×; most other markets stop between 3× and 15×. The launcher shows each market’s limit as you choose it.
At 10× long, each $100 in the token holds a $1,000 position, so a 1% move in the market moves the token about 10%, up or down.
Buying and selling
The creator’s seed opens the token’s position at launch. Every buy after that adds to it, and every sale takes from it, at the token’s value:
- Buy: pay USDC. It goes to the token’s vault, which uses it to grow the position at the token’s leverage: at 10×, $100 adds $1,000. New tokens are then minted to you, usually within a minute.
- Sell: hand your tokens back. The vault closes their share of the position on Hyperliquid, and the USDC that comes back from it is paid to you.
Launching one
Pick the market, long or short, and the leverage, name it and give it a ticker, and seed it with USDC to open the position. Its terms are written at launch and can’t change afterwards.
The creator takes a share of every buy and sell fee, from 1% to 50% of it, set at launch: 25% unless they choose otherwise.
What it costs
On the tokens live today, buying and selling each take 0.8% to 1.07%. There is no yearly fee.
Each token’s fees are set at launch and shown on its page, and again before you confirm.
Checking it yourself
Every leverage token’s page shows its position, its value per token and when that was last read, and its vault’s address. The same data is open to anyone through Koturo’s API, with no key.