Leveraged equities

Nest's leveraged-equity vaults are tokenized strategies that target leveraged exposure to an underlying equity index. The current products are 2SPY and 2QQQ, which target approximately 2× exposure to SPY and QQQ respectively.

What a vault share represents

A vault holds assets and debt as part of its strategy. The share price is based on net asset value:

net asset value = assets - debt - accrued costs

The manager adjusts the position toward its target leverage band. A share does not promise exactly twice the underlying return over long periods. Rebalancing, fees, financing costs, execution, and path dependence all affect performance.

Deposits and withdrawals

Vault deposits and withdrawals are processed through on-chain intents. They may remain pending while the manager executes the transactions needed to enter or exit the strategy safely. The app shows the current intent status and the latest indexed vault state.

Main risks

• Amplified losses: A decline in the underlying produces a larger decline in vault NAV.
• Path dependence: Volatile back-and-forth markets can reduce performance even when the underlying later returns to its starting price.
• Execution risk: Slippage, market hours, and available liquidity affect rebalances and user flows.
• Debt and liquidation risk: The strategy uses collateralized debt and must remain within on-chain risk limits.
• Pending settlement: Entry or exit is not always immediate.