# FAQ

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<summary>How are leveraged tokens different to perpetual futures?</summary>

The primary differentiator to perpetual futures is that leveraged tokens maintain their leverage factor within a target range. They achieve this by reactively rebalancing the amount of borrowed funds.&#x20;

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<summary>Why would I use leveraged tokens?</summary>

One use case of leverage tokens is to minimize the necessity for margin management, i.e. monitoring the margin-to-notional ratio and adjusting the leverage to prevent liquidation.

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<summary>Can leveraged tokens liquidate in extreme cases?</summary>

Yes, in theory, leveraged tokens can face liquidation if keepers cannot rebalance a position quickly enough in response to sudden, large price movements. In the case of a liquidation, the value of a leveraged token would become zero, and a new leveraged token contract would be deployed.&#x20;

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<summary>Why was my ROI lower than I expected it to be?</summary>

The Return on Investment (ROI) might be lower than expected due to factors such as volatility decay, rebalancing costs, or Synthetix fees, such as a high funding rate.

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<summary>How can I get a referral link?</summary>

Referral links are distributed to a limited number of contributors and community members. The easiest way to find a referral link is to ask in our [Discord](https://discord.com/invite/kfp8bktXWN).

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<summary>Can I trade leveraged tokens on secondaries instead of redeeming them?</summary>

Yes, leveraged tokens, being built on the ERC-20 token standard, are tradable on secondary marketplaces. However, this is dependent upon sufficient liquidity in the respective Decentralized Exchange (DEX).

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