Definition: 3X Long Bitcoin Token (BULL) is an ERC20 token which seeks a return that corresponds to 3 times the daily return of Bitcoin.
Disclaimers1. None of this is investment advice.
2. Much of the below analysis ignores any difference between futures and spot prices, and ignores the effects of fees.
3. While your account's holding of a leveraged token cannot be liquidated, the leveraged token itself theoretically could be. Leveraged tokens greatly reduce the risk of liquidation but cannot make it fully impossible; if markets instantaneously gap down 50%, there is nothing that can stop the +3x leveraged position held by the leveraged token from getting liquidated. In addition, while leveraged tokens attempt to avoid getting liquidated, this does not prevent them from being able to suffer heavy losses.
4. Leveraged tokens can have unintuitive edge cases. The below is a summary of their common behavior.
Users should trade Leveraged Tokens at their own risk.
5. Leveraged tokens, like the rest of FTX, are not being offered to US users
There is also other coins like it:
Buttom line it give you the return x3 (leverage x3), high risk which IMO not worth it unless you're a total gambler not a trader.