So this is my point / doubt: those mechanisms underlying BLVT price definition may even be complex and various but, as long as all this elements are expressed and reflected into one single element (which is price), you can always define your risk clearly and trade this asset as any other ordinary trading asset; and, most importantly: you can always define your risk by observing only one single element, which in this case is price action.
Not margin, not liquidation, not fees: you will observe and base upon price action and price action only.
Is this right?
Yep. Everything is calculated into price. Token is backed by real asset. Binance is constantly rebalancing amount of tokens. You only need to know that you need to subscribe/redeem your funds (max20k per user). Every fees (except trading fees), funding is reflected by price.
"iv. Management fees: A daily management fee of 0.01% will be charged at 00:00 UTC and reflected directly in the net asset value of the leveraged tokens;
v. Funding fees: Funding fees are paid (or paid to) the underlying fund based on the funding rate and reflected directly in the net asset value of the Leveraged tokens. Binance takes no fees for funding rate transfers; these are directly between traders."
https://www.binance.com/en/leveraged-tokens/tokens/allTokensThe only fee that is not reflected into price are Subscription and Redemption fees.
"ii. Subscription fees: Subscription fees are charged when users choose to subscribe tokens, which is currently set at 0.1% per subscription.
iii. Redemption fees: Redemption fees are charged when users choose to redeem tokens, which is currently set at 0.1% per redemption."