Gate.io has
added the following ETFs: DOT5L and DOT5S,XRP5L and XRP5S. 5L is a long
position while 5S is a short position, which tracks the price change
range of the underlying asset and changes with amplified range
percentage.
Below are the re-balancing rules for 5 x leveraged ETFs:
1） Irregular re-balancing： When the real-time leverage is over 7 times,
irregular re-balancing will be triggered. The leverage will be adjusted
to 5 times.
2) Regular
re-balancing： Everyday at 0：00 UTC+8, when the real-time leverage is
less than 3.5 times or above 7 times； or the underlying asset price
changes drastically (e.g. up or down over 1 % on contract index price),
regular re-balancing will be triggered to adjust the leverage to 5
times.
3) 5x leveraged ETFs are more
susceptible to underlying asset’s volatility. They are more likely to
have re-balancing and thus have more frictions compared to a 3x
leveraged ETF. Please be ware of the risks and choose product suited to
your needs.
Trade DOT5L at https://www.gate.io/trade/DOT5L_USDT
Trade DOT5S at https://www.gate.io/trade/DOT5S_USDT
Trade XRP5L at https://www.gate.io/trade/XRP5L_USDT
Trade XRP5S at https://www.gate.io/trade/XRP5S_USDT
About Leveraged ETF
The leveraged ETF product re-balances to a target leverage if a certain
criterion is triggered. When it re-balances, profit will be used to
expand the position while the loss will lead to decrease of the
position. When trading with ETFs, you do not have to pay a margin. You
can simply buy and sell it to enjoy increased exposure like you are
trading with leverage. ETF products are managed and hedged in the
perpetual contract market. We charge a management fee daily to
compensate for the funding payment and trading fee which is incurred at
perpetual contract markets. No extra funding fee is charged. By
optimizing the fund management, the cost and risks for you to get
leveraged exposure are significantly reduced.
Risk Warning
Digital currency prices are susceptible to high volatility, which is
even more tangible for the leveraged ETF products. Therefore there is a
risk to suffer amplified loss. Please fully understand the product and
risks involved before trading. Furthermore, the change of an ETF product
is not always about the target times of the underlying asset over a
certain time span as the result of scheduled or irregular re-balancing.
An ETF product is hedged in a perpetual contract market, the profit will
expand the position and the loss will decrease the position, which will
incur greater friction in a swinging market. Due to the rebalancing
mechanism and the holding cost, the ETF is not suitable for long term
holding. It has greater fluctuation and higher risk. Please be cautious.
For more details, please read instructions about Leveraged ETFs at our
Help Center.
Gate.io is an established exchange that holds integrity, transparency, and fairness to a very high standard. We charge zero listing fees and only choose quality and promising projects. Our exchange consists only of 100% real trading volume. Thanks to everyone who has joined us in our journey. We always intend to improve and innovate to reward our users for their continuous support.
Gate.io Team
January 14, 2021
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