Profit and Loss Rules for Leveraged ETF

In the leveraged ETF zone, target and token name stands for a pegged asset, and the numbers indicate multiple leverage, with L stands for Long, S stands for Short.

Example (position rebalancing mechanism aside)

When you buy 10,000 USDT BTC, BTC3L, BTC3S, BTC5L and BTC5S respectively.

• When BTC assets increase to 11,000 USDT

The target assets of leveraged ETF are as follows:

BTC3L: 1 3000 USDT, BTC3S: 7,000 USDT, BTC5L: 15000 USDT BTC5S: 5000 USDT

• While when the BTC assets drop to 9,000 USDT

The target assets of leveraged ETF are as follows:

BTC3L: 7,000 USDT, BTC3S: 13,000 USDT, BTC5L: 5,000 USDT BTC5S: 1,5000 USDT

Leveraged ETF is a trading product that can track a certain multiple of the target daily return on assets on the premise of a given pegged asset. Here, BTC asset is only used as an example, and the profit and loss rules of other targets in the leveraged ETF zone are the same.

The examples of gains and losses are for the convenience of understanding. The actual gains and losses may have a certain deviation due to the relevant product mechanism. Please refer to the relevant articles for reference.

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.