What Is Linkdown (LINKDOWN)?

LINKDOWN is a short Chainlinktoken that aims to generate leveraged gains ranging from 1.5x to 3x when Chainlink’s price falls. This is a BLVT (Binance leverage token) that operates on the Binancespot market. Spot market is a financial market where assets are traded in real time. Binance Leveraged Tokens are off-chain tokens that offer users leveraged access to the underlying asset. Every leveraged token is made up of a set of perpetual contract positions. The token price is calculated by changes in the notional value of the perpetual contract holdings and variations in leverage multiples.

The Leveraged tokens are a financial derivative with zero duration and continuous new price quotes. As these tokens are linked to the underlying asset, the leveraged token's price moves in complete harmony with the underlying asset's price. Therefore, LINKUP lets users receive profits on leveraged gains when Chainlink (LINK) increases. However, LINKDOWN allows users to receive profits from leveraged gains when Chainlink (LINK) decreases in value.  Binance Leverage Tokens do not maintain consistent leverage. The aim is to keep a flexible target leverage range of 1.2x to 4x that maximizes profits on upswings and minimizes losses to prevent liquidation. However, the real leverage can exceed the target range in extreme market conditions and be hidden from external observation.

To trade the Binance Leveraged Tokens, a user has to pay certain fees which may affect their desired returns. The changes in the fees can be made by the Binance platform only. 

• Redemption Fees: When a user decides to redeem their tokens, then that user is charged with redemption fees at 0.1 percent. 

• Trading Fees: This fee is charged at the time of trading tokens in the Binance spot market.

• Funding Fees: This fee is paid to the underlying fund and is recorded in the net asset value (NAV) of the Leverage Tokens.

• Management Fees: One-tenth percent of the daily management fees is collected at 00:00 UTC and reflected in the NAV of the Leveraged Tokens directly.

History of Linkdown (LINKDOWN)

The LINKDOWN token went live on July 16, 2020, along with LINKUP.