Gate.io
has added the following ETFs: NEO3L and NEO3S, ETC3L and ETC3S, CVC3L
and CVC3S, ONT3Land ONT3S. 3L is a long position while 3S is a short
position, which tracks the price change range of the underlying asset
and changes with amplified range percentage.
With the
updated re-balancing rules, the leveraged ETF product now regularly
re-balances to a target leverage (2.3X) if a certain criterion is met
at 0：00
UTC+8 on a daily basis; Besides the scheduled re-balancing, when the
real-time leverage of the product is larger than 3x, it will
re-balance as well.
Below are the new re-balancing
rules:
1） Irregular
re-balancing： When
the real-time leverage is over 3 times, irregular re-balancing will
be triggered. The leverage will be adjusted to 2.3 times.
2)
Regular re-balancing： Everyday
at 0：00
UTC+8, when the real-time leverage is less than 1.5 times or above 3
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 2.3 times.
3) After the upgrade, ETF’s
market volatility will decrease and frictions over a longer time will
be reduced; but it is far from completely avoiding the long-time
frictions. The ETF performs better in a one-sided market as it will
use profit to increase position and decrease position when there is a
loss, but it is not suitable for long term holding and performs bad
in a swinging market.
Trade NEO3L at https://www.gate.io/trade/NEO3L_USDT
Trade NEO3S at https://www.gate.io/trade/NEO3S_USDT
Trade ONT3L at https://www.gate.io/trade/ONT3L_USDT
Trade
ONT3S at https://www.gate.io/trade/ONT3S_USDT
Trade
CVC3L at https://www.gate.io/trade/CVC3L_USDT
Trade
CVC3S at https://www.gate.io/trade/CVC3S_USDT
Trade ETC3S at https://www.gate.io/trade/ETC3S_USDT
Trade
ETC3L at https://www.gate.io/trade/ETC3L_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
November 14, 2020
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