We can use this trading range to set the floor and cap prices for the token pair. Continuing the example above the value of a long and short pair of tokens is equal to the delta, here $150.00, with floor set at $225.00 and cap at $375.00. That is, depositing $150.00 worth of collateral will mint a L&S pair. Assuming the spot price when the tokens are minted is $300.00, each token will have a value of $75.00, representing a leverage of $300.00/$75.00 = 4x. Choosing the floor and cap based on historical delta allows us to create a non-expiring perpetual token that can be held indefinitely as long as the spot remains within the historical range.