Leveraged trackers

A tracker is an ERC-20 whose value follows a real market at a stated multiple. NVDAx5 moves five times as hard as Nvidia. TSLAx5S moves five times as hard, in the opposite direction. MSTRx2 moves twice as hard as Strategy.

They are what a bonded coin is paired to, and what turns its backing from idle stablecoin into a position.

---

Reading the name

The symbol says everything about the terms: <TICKER>x<L>, with an S suffix for a short.

The number after the x is the multiple the creator chose at launch, and there is no other place the terms are recorded — the front, the hedge book and the keeper read them straight off the symbol. The token's name spells the same thing out, e.g. NVDA 5x or MSTR 2x Short.

Choosing the multiple

The creator picks the multiple when launching a coin, from 1× up to the market's cap. The cap is the lower of two numbers: the product ceiling, LTFactory.MAX_LEVERAGE = 5, and the leverage a position can actually hold on that market on the venue. LTFactory.maxLeverageFor(symbol) returns it, and getOrCreateSharedLt refuses anything above it, so a tracker never promises a multiple its hedge cannot hold.

What a position can hold is set just under the venue's own cap. Nado's cap on a market is 1 / (1 − initial margin weight) — 20× on the big US stocks and the indices, 10× on the others and on the metals and oil, 3× on a few volatile names. At exactly the cap a position has no margin to spare, and the trading fee alone would make the venue refuse the order, so the factory lists 90% of the cap, rounded down: 18×, 9× and 2×. The keeper sizes with the same 10% headroom. Nvidia trades at 20× on the venue and the cap is still 5×; Strategy is listed at 3×, holds 2×, and the cap is 2×.

What backs a tracker

A perpetual position on Nado, the order-book perpetuals exchange on Ink, held in an account that belongs to the tracker's own vault contract. The vault deposits its USDT0 into its own Nado subaccount — its address followed by the name default — and every withdrawal from that account is paid back to the vault, whoever asks for it. There is no operator wallet in between and no bridge. LTFactory.venueRouting(lt) returns the Nado market the tracker hedges on and the account owner, and the owner is the vault.

The keeper trades that account through a key the vault links as its signer. The venue lets that key place and cancel orders and withdraw back to the vault; it cannot send the vault's USDT0 anywhere else. How much can go to the venue at all is capped on chain at the vault's idle USDT0 above what it keeps for redemptions. The vault owner can unlink the key at any time. See Risks & security.

The tracker's NAV is its backing — the account's equity plus the USDT0 in the vault — divided by its supply, posted on chain by the keeper and readable by anyone. Mint and redeem are open at NAV, which is what holds a tracker at its stated value: if the market price drifts from NAV, minting or redeeming at NAV is immediately profitable, and the drift closes.

The markets you can launch against

Every market the factory owner has listed (LTFactory.underlying(symbol)): the stocks, indices, metals and commodities in the catalogue — 28 of them — long or short, at any multiple up to that market's cap. One tracker exists per (market, direction, multiple) that has been launched on, and the first coin to pick a new combination creates it; a combination nobody has launched on simply has no tracker yet.

The venue lists gold as XAUT-PERP (Tether Gold); the tracker is still XAUx5.

These markets trade around the clock. Nado keeps stocks, indices and commodities open 24/7 — priced from Pyth during market hours and from a median of other round-the-clock venues outside them — so a tracker's position can be resized, and its NAV keeps moving, on nights and weekends too. The only stop is the venue pausing a market (post-only, reduce-only or not tradable); while it lasts, the position cannot be grown.

One tracker, many coins

Every coin bonded onto NVDAx5 puts its backing behind the same Nvidia exposure. They pool. A tracker carries one position, not one per coin, which is why the hedge book sums their backing before doing any arithmetic. A coin on NVDAx3 is on a different tracker with its own position and its own reference pool; the multiple is part of what a coin shares, not only the market and the direction.

That is worth understanding as a holder: your coin's floor moves with Nvidia at the multiple in its tracker's name, and so does every other coin bonded onto the same tracker. The concentration of the whole book is public, on the hedge book page.