A leveraged ETF is a fund product based on the price of a basic digital currency (such as BTC), and achieves a fixed multiple (such as 3 times or -3 times) of the underlying asset return rate from the time of the last position adjustment. For example, if the price of BTC rises by 1%, the net value of the corresponding 3x leveraged bullish ETF product (BTC3L) will rise by 3%, while the net value of the corresponding 3x leveraged bearish ETF product will fall by 3%. Since the latest transaction price of the product may deviate from the net unit value, we will also list the net unit value and the latest transaction price to avoid losses for investors.
The unilateral market return of leveraged ETFs is better than that of futures contracts with the same leverage; and for long-term volatile markets, due to the amplification of wear and tear, there is even a risk that the net value price will tend to zero. Mexo leveraged ETF products are traded 7x24 hours, and the market is volatile. Based on the principle of minimal impact on the market, we will merge ETF shares based on the principle of minimizing the number of times without affecting the user experience.
When the net value of leveraged ETF products is lower than or close to 0.050 USDT, it will trigger the Mexo leveraged ETF product share consolidation mechanism. In this case, we will carry out share consolidation operations on the relevant leveraged ETF products, which will affect the number of user ETF holdings and the net value of the unit, but will not affect the total value of the user's holdings (not considering the net value change caused by the fluctuation of the underlying price during the operation). The specific operation rules are as follows:
1) The product share of related ETF products will be merged at 20:1, and the user's position will be reduced to 1/20 of the previous one, and the unit net value will increase by 20 times;
2) Before the share merger, the corresponding product market trading will be suspended, and all orders in processing in the market will be cancelled;
3) After the shares are merged, the corresponding product market will be reopened for trading. It is estimated that the restart will be completed in about 30 minutes. Please be aware that after the market recovers, the market price will change significantly according to the new unit net value. Please pay attention to price changes when placing an order;
4) After the shares are merged, the K-line data will undergo jumps due to price changes.
For more information about leveraged ETFs on Mexo Exchange, please check the following documents:
Risk Warning:
Digital assets are innovative investment products with large price fluctuations. Please judge your investment ability rationally and make investment decisions prudently.
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Mexo Team
(Prior Mexo)