The leveraged ETF markets in crypto are traded 24/7, and typically have great fluctuations. Some leveraged ETFs are currently traded on Gate.io with too small a share value, which negatively impact the price precision and trading simplicity. To improve users’ experience in trading these ETFs, Gate.io will conduct share merge for several leveraged ETFs on Oct 22, at around 07:00 AM UTC. After this share merge, the number of ETF shares held by users and the unit value per share will change. However, the total value of users holdings will not change (without considering value changes caused by market fluctuations). Below we will explain how the merge will be conducted:

1) DOT5S will have a 1-for-10000 reverse split. After the split is completed, the number of ETF shares held by users will become 1/10000 of what they held before the split , and the unit value will be 10000 times more than before the split.

2) ROSE3S will have a 1-for-1000 reverse split. After the split is completed, the number of ETF shares held by users will become 1/1000 of what they held before the split , and the unit value will be 1000 times more than before the split.

3) LTC5S will have a 1-for-1000 reverse split. After the split is completed, the number of ETF shares held by users will become 1/1000 of what they held before the split , and the unit value will be 1000 times more than before the split.

4) ETH5S will have a 1-for-1000 reverse split. After the split is completed, the number of ETF shares held by users will become 1/1000 of what they held before the split , and the unit value will be 1000 times more than before the split.

5) CVC3S will have a 1-for-1000 reverse split. After the split is completed, the number of ETF shares held by users will become 1/1000 of what they held before the split , and the unit value will be 1000 times more that before the split.

6) Before the reverse split, Gate.io will temporarily suspend these ETF trading markets and cancel any open orders.

7) After the reverse split is completed, Gate.io will resume these ETF trading markets. Please note, the price will fluctuate around the new unit value right after the split. Users should pay close attention when placing their orders.

8) After the reverse split, the candlestick chart will have a gap, or unfilled space in price. You may use split-adjusted functionalities to get a smoother looking chart.

About Leveraged ETFs

The leveraged ETF product re-balances to maintain a target leverage if a certain criteria is triggered. When it re-balances, profit will be used to expand the position while the loss will lead to a decrease of the position. When trading with ETFs, you do not have to pay a margin directly. However you may pay margin indirectly because the underlying futures contracts may have fees associated with holding a position. You can simply buy and sell it to enjoy increased exposure as if you were trading futures with leverage. ETF products are managed and hedged in the perpetual futures contract market so you avoid roll-over fees associated with expiring futures contracts. We charge a daily management fee to compensate for the funding rate and trading fee which is incurred with perpetual contract markets. No extra funding fee is charged. By optimizing the fund management, the cost and overall risks for you getting 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 of suffering an amplified loss. Please fully understand the product and the risks involved before trading. Furthermore, the change of an ETF product is not always about the total movement in price of the underlying asset over a certain time span but instead may differ as a result of scheduled position sizere-balancing to maintain the same leverage ratio. An ETF product is hedged in a perpetual contract market. The profit will expand the position and the loss will decrease the position. This will be amplified in a volatile market. Due to the rebalancing mechanism and the holding cost, the ETF is not suitable for long term holding. It has greater fluctuations and higher risk. Please be cautious. For more details, please read instructions about Leveraged ETFs at our Help Center.

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