Leveraged ETF Consolidation Mechanism

When the net price of the relevant target in the leveraged ETF zone is lower than a certain threshold (different target has different threshold, the deeper the price precision is, the easier it is to be triggered), XTrust will combine the targets, and the net price will become 100 times before the combination, the corresponding target will also become 1/100 before the combination (the combination multiple of different targets will be slightly different, generally 10 times, 100 times, 1000 times).

Combination operation will not affect the total assets of the user's position. The purpose of the combination mechanism is to improve the sensitivity of price changes and optimize the trading experience.

The existence of the combination mechanism is because the net value of target is too low, and it is necessary to increase the net value by merging shares. The main reason for this phenomenon is that the assets anchored by the subject matter of the merger continue and a large reverse market trend.

Statement:

• Leveraged ETFs are emerging financial derivatives. The above content does not constitute investment advice. Please pay attention to risk control.
• Leveraged ETF greatly reduces the risk of being forced liquidated, but there will be risks of approaching zero and being liquidated in extreme market conditions. Please pay attention to the difference between net value and price to avoid losses.