Leveraged trackers

A tracker is an ERC-20 whose value follows a real market at a stated multiple. NVDAx5 moves five times as hard as Nvidia. TSLAx5S moves five times as hard, in the opposite direction. MSTRx2 moves twice as hard as Strategy.

They are what a bonded coin is paired to, and what turns its backing from idle dollars into a position.

---

Reading the name

The symbol says everything about the terms: <TICKER>x<L>, with an S suffix for a short.

The number after the x is the multiple the creator chose at launch, and there is no other place the terms are recorded — the front, the hedge book and the keeper read them straight off the symbol (the vault's targetLeverageX() and isShort() say the same on chain). The token's name spells the same thing out, e.g. NVDA 5x or MSTR 2x Short.

Choosing the multiple

The creator picks the multiple when launching a coin, from 1× up to the market's cap. The cap is the lower of two numbers: the product ceiling, LTFactory.MAX_LEVERAGE = 5, and the leverage a position can actually hold on that market on the venue. LTFactory.maxLeverageFor(symbol) returns it, and getOrCreateSharedLt refuses anything above it, so a tracker never promises a multiple its hedge cannot hold.

What a position can hold is set just under the venue's own cap. edgeX publishes a table of risk tiers per market; the first tier's maximum leverage is the cap for a position of ordinary size — 20× on the big indices, Nvidia, Apple, SpaceX and Brent, 10× on most single stocks, 30× on silver and WTI, 50× on gold. At exactly the cap a position has no margin to spare, and the trading fee alone would make the venue refuse the order, so the factory lists 90% of the cap, rounded down: 18×, 9×, 27× and 45×. The keeper sizes with the same 10% headroom, against whichever tier the position's size falls in. Gold trades at 50× on the venue and the cap is still 5×.

What backs a tracker

A perpetual position on edgeX, an order-book perpetuals exchange margined in USDC, held in an edgeX account dedicated to that tracker. A smart contract cannot own an edgeX account, so the account belongs to the protocol's hedge wallet — an ordinary wallet — and the tracker's vault records that wallet as its hedgeFunder, the only address it can ever send hedge money to. LTFactory.venueRouting(lt) returns the edgeX market the tracker hedges on (its marketId, edgeX's contract id — Nvidia is 30000020) and the hedge wallet.

The money moves in short, visible legs. The vault sends idle USDC to the hedge wallet (fundHedge, capped on chain by fundableUsdc() and impossible before the tracker bonds); the keeper deposits exactly that into the tracker's edgeX account in the same pass; and every withdrawal from the account names the vault as recipient, so edgeX pays the vault directly on Arc. Orders are signed by a separate key that can only trade. The details, and what you have to trust, are in The hedge book.

The tracker's NAV is its backing — the account's equity, plus the USDC in the vault, plus any USDC on its way between the two — divided by its supply, signed by the keeper and posted on chain, readable by anyone. Mint and redeem are open at NAV, which is what holds a tracker at its stated value: if the market price drifts from NAV, minting or redeeming at NAV is profitable, and the drift closes. A redeem is paid at once out of the vault's idle USDC; shared trackers keep no idle buffer on purpose (so the books never run ahead of the venue), so a redeem the vault cannot cover joins a first-in-first-out queue that the keeper fills by withdrawing from edgeX — about a minute per withdrawal once the venue accepts it.

The markets you can launch against

Every market the factory owner has listed (LTFactory.underlying(symbol) → (marketId, maxLeverage, listed)): the 33 stocks, indices, metals and commodities in the catalogue, long or short, at any multiple up to that market's cap. One tracker exists per (market, direction, multiple) that has been launched on, and the first coin to pick a new combination creates it; the 5× long and short trackers of every market are created at deployment.

edgeX lists WTI as CLUSDC and Brent as BZUSDC; the trackers are still WTIx5 and BRENTx5. These figures are a snapshot of edgeX's market list (2026-09-16); the keeper re-reads the live one.

Position caps. Each edgeX market also caps how big one account's position may be (maxPositionSize: 900 units on Nvidia, 400 on SPY, 480 on Tesla) and prices its first risk tier up to a notional of $200,000 ($300,000 on gold, silver and WTI); beyond that the allowed leverage steps down. One tracker is one account, so every coin on a tracker shares that cap. The keeper never sizes past it: backing beyond what the cap allows sits in the account as margin rather than as more exposure, and a tracker that large runs below its stated multiple.

These markets are listed around the clock, but stocks still have hours. edgeX keeps its stock and ETF perpetuals open 24/7. While the underlying market is closed — nights and weekends — it rejects market orders, only accepts limit orders inside a band around the last close (the close ± 1 / max leverage), and moves the mark price by at most 0.5% every 3 seconds. The keeper therefore only sends immediate-or-cancel limit orders, priced off the venue's oracle within 0.5% and clamped into that band; on a thin night book an order may not fill, and it is simply tried again on the next pass. A market the venue halts cannot be traded at all, and a market it sets to reduce-only can be shrunk but not grown, until it resumes.

One tracker, many coins

Every coin bonded onto NVDAx5 puts its backing behind the same Nvidia exposure. They pool. A tracker carries one position, not one per coin, which is why the hedge book sums their backing before doing any arithmetic. A coin on NVDAx3 is on a different tracker with its own account and its own reference pool; the multiple is part of what a coin shares, not only the market and the direction.

That is worth understanding as a holder: your coin's floor moves with Nvidia at the multiple in its tracker's name, and so does every other coin bonded onto the same tracker. The concentration of the whole book is public, on the hedge book page.