# How Leveraged Tokens Work

The following sections outline the fundamental mechanisms that underpin the defining characteristics of TLX leveraged tokens:

#### Leveraged asset exposure & deep liquidity

{% content-ref url="how-leveraged-tokens-work/synthetix-perps-engine" %}
[synthetix-perps-engine](https://docs.tlx.fi/basics/how-leveraged-tokens-work/synthetix-perps-engine)
{% endcontent-ref %}

#### Constant leverage range

{% content-ref url="how-leveraged-tokens-work/rebalancing" %}
[rebalancing](https://docs.tlx.fi/basics/how-leveraged-tokens-work/rebalancing)
{% endcontent-ref %}

{% content-ref url="how-leveraged-tokens-work/keepers" %}
[keepers](https://docs.tlx.fi/basics/how-leveraged-tokens-work/keepers)
{% endcontent-ref %}

#### Composability

{% content-ref url="how-leveraged-tokens-work/erc-20-compliance" %}
[erc-20-compliance](https://docs.tlx.fi/basics/how-leveraged-tokens-work/erc-20-compliance)
{% endcontent-ref %}