DEFI3L is a leverage token representing a long position on DEFI multiplied by 3. If DEFI increases by 1%, the net value of DEFI3L will increase by approximately 3%. In a fluctuating market the NAV of the token will be worn, and in extreme market conditions the value of the asset may be reduced to 0. Leverage tokens should only be held for short time periods to avoid losses resulting from price erosion.