Inverse tokens allow token holders to make a bet that a cryptoasset will decline within a day and profit from it if their hypothesis holds true. If the price of a cryptoasset falls, the inverse token rises by roughly the same percentage before fees and expenses. As such, inverse tokens are best suited to be used during unexpected or black-swan-like market downturns on a single day.

These are also the four advantages of using our inverse tokens:

  • Zero hassle: Traders don't have to worry about managing funding rates, borrowing costs or monitoring positions for risks of margin calls.
  • Daily rebalancing: Each token rebalances daily to ensure constant inverse ratios of the underlying assets are always maintained. This prevents the token holder from getting liquidated as is the case when leverage is used for futures and perpetual swap contracts.
  • Tradability: Our tokens are listed on the leading crypto exchanges making it easier to enter and exit positions on the secondary market.
  • Best execution: Our smart order routing features allow for intended exposure at the lowest trading rates across the digital asset market.

Inverse tokens are not suited for long-term investments since the underlying cryptoasset is bought and sold on a daily basis by the Jasper Token Manager accessible through our official website. They are rather better suited for a daily bet on the decline of the underlying cryptoasset such as Bitcoin and Ether. As a result, inverse tokens enable investors to benefit when the performance of the underlying cryptoasset declines within a day.