The X2 protocol provides the simplest and easiest way for anyone to obtain on-chain leverage.. BULL and BEAR tokens of any asset can be bought with zero spread and zero slippage using a simple swap interface.

The protocol is fully decentralised while remaining front-running resistant. It does this by settling positions at the lower of the last two prices for bull tokens, and the higher of the last two prices for bear tokens.

Basic Example

  1. The price of ETH/USD is 1000

  2. Alice mints 20 10X BULL ETH/USD tokens for 20 ETH

  3. Bob mints 20 10X BEAR ETH/USD tokens for 20 ETH

  4. The price of ETH/USD increases by 1% to 1010

  5. Alice would still have 20 10X BULL ETH/USD tokens

  6. Bob would now have 18 10X BEAR ETH/USD tokens

In this example, Bob's tokens decreased while Alice's tokens have not yet decreased. This is because of the front-running protection previously mentioned.

Profit Example

  1. Continuing on the previous example, if the price of ETH/USD increases by 1% again to 1020.1

  2. Alice would now have 22 10X BULL ETH/USD tokens

  3. Bob would now have 16.2 10X BEAR ETH/USD tokens


Every BULL / BEAR token can be redeemed at a 1:1 ratio with the original token used for minting, in the given examples, this would be ETH.

Leverage Decay

Similar to FTX's leveraged tokens, gains and losses are compounded. If you buy 20 10X BULL tokens and the price increases by 1%, your profit would be +10%. If the price increases by another 1% your profit would be +21%. The opposite would happen for losses where a sequence of two 1% decreases would lead to a loss of 21%.

Another case to consider would be if the price moves 1% in favour of your position and 1% against your position. On the first move your profit would be +10% and your position size would now be 110% of your initial capital. On the second move your loss would be 11% because of the increase in your position's size.

Due to this, BULL and BEAR tokens are more suitable for short term trades or for traders who take profits more frequently.

Target and Actual Leverage

While the tokens have a target leverage, profits and losses are capped to the liquidity of the smaller side. For example, if there is a total of 100 10X BULL tokens and 80 10X BEAR tokens, then profits and losses of BULL tokens will follow an 8X leverage while profits and losses of BEAR tokens will continue to follow a 10X leverage.

These leverages are indicated on the X2 trading interface.


A 0.2% fee is applied when buying and selling BULL and BEAR tokens. This fee is distributed to XVIX stakers.

Price Feed

X2 integrates Chainlink for reliable price feed data.


BULL and BEAR tokens are regular ERC-20 tokens so they can be easily stored in wallets or transferred to different addresses as needed. The changes in balances are achieved through rebases similar to AMPL.

Reserved Tokens

The front-running protection applies to all tokens, even newly bought ones. This means that if the price is increasing and you buy BULL tokens, you would need to wait for one price update before being able to sell your tokens for the original amount of ETH used to mint the tokens.

On the UI this is shown as the "Reserved" amount.


There are no liquidations for BULL / BEAR tokens, on a large price movement, the maximum loss is 90% of the current position size. If the price moves continuously against a trader's position then their amount of BULL / BEAR tokens will tend slowly toward zero.


You can read more about the features of X2 here.

Useful Links