> For the complete documentation index, see [llms.txt](https://takes.gitbook.io/takes-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://takes.gitbook.io/takes-docs/concepts/token-and-basket-model.md).

# Token and basket model

Each token represents a share of a dedicated trading account. Its basket fixes the markets, directions, weights, and per-asset leverage.

New tokens use **notional weights**. A 60% BTC / 40% ETH basket assigns 60% of total position exposure to BTC and 40% to ETH after leverage. Long and short magnitudes both count positively. Direction is separate from weight.

Per-asset leverage determines the total exposure that the equity can support:

```
D = sum(weight / asset leverage)
Basket target leverage = 1 / D
Asset target notional = account equity × weight / D
Derived capital weight = (weight / asset leverage) / D
```

For 100 USDC of available equity, before trading costs:

| Leg       | Notional weight | Asset leverage | Target exposure | Derived capital |
| --------- | --------------- | -------------- | --------------- | --------------- |
| BTC long  | 60%             | 3×             | 150 USDC long   | 50 USDC         |
| ETH short | 40%             | 2×             | 100 USDC short  | 50 USDC         |

Gross exposure is 250 USDC, so basket target leverage is 2.5×. If 100 USDC means total notional instead of equity, the same weights mean 60 USDC BTC and 40 USDC ETH. Derived capital is an accounting allocation in the shared cross-margin account, not isolated collateral.

All supported tokens use notional weights with per-asset leverage.

The basket and model stay fixed after creation. Prices, funding, deposits, and withdrawals change the account. [Rebalancing](/takes-docs/concepts/trading-and-rebalancing.md#trading-and-rebalancing) adjusts positions toward the model's targets. Fees, market lots, minimum orders, and incomplete fills can leave differences from target.

You hold exposure to perpetual futures, not ownership of the underlying BTC or ETH. A perpetual future follows a market without an expiry date.


---

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