gate Announcement on Holdings Share Consolidation and Net Asset Value Adjustment of ETF Products (XRP5S, GALA5S, XLM3S, DOT5S, AXS5S)

Abstract generation in progress

Gate.io leveraged ETF is a trading product with leverage and automatic rebalancing mechanism. The ETF product adjusts the leverage ratio daily to the target leverage multiple based on the profit and loss. Profit will open a position, and loss will reduce position. Users do not need to pay margin when trading leveraged products, and they can achieve leverage trading through simple buying and selling. The ETF product is managed through hedging in the perpetual futures market, and a daily management fee is charged to compensate for contract market fees, funding rate, and other costs. However, no additional contract funding rate is charged. Through fund management optimization, it reduces users' actual leverage costs and leverage risks. Gate.io ETF products are traded 7x24, and the market fluctuation is relatively large. In order to minimize the impact on the market, we will merge or split the ETF shares with the principle of minimizing the frequency without affecting the user experience. Currently, the unit price of multiple ETF products is too low, which affects the trading convenience and price accuracy. In order to improve the trading experience of ETF products, we will conduct a share consolidation operation on multiple ETF products around 14:00 PM (UTC+8) on November 19, 2024, which will affect the user's ETF holdings and unit net value, but will not affect the total value of the user's holdings (excluding the net value changes caused by price fluctuations during the operation period). The specific operation rules are as follows:

XRP5S product shares will be merged at a ratio of 100:1, and users' open interest will decrease to 1/100 of the previous amount, while the unit value will rise by 100 times.
The GALA5S product shares will be merged at a ratio of 100:1, and the user's open interest will be reduced to 1/100 of the previous amount, with the unit net value rising by 100 times.
XLM3S product shares will be merged at a ratio of 100:1, and user open interest will decrease to 1/100 of the previous amount, with the unit value rising 100 times. 4）DOT5S product shares are merged at a ratio of 100:1, and the user's open interest will decrease to 1/100 of the previous amount, with the unit net value rising 100 times
The AXS5S product shares are merged at a ratio of 100:1, and the user's open interest will decrease to 1/100 of the previous amount, while the unit net value will rise 100 times. 1 hour before the merger of shares, trading in the corresponding product market will be suspended, and all orders in the market will be canceled.
After the merger of shares, the corresponding product market will be reopened. Please be sure to note that after the market resumes, the market price will change significantly according to the new net asset value. Be sure to pay attention to the price changes when placing an order. After the share consolidation, the Candlestick data will have gaps due to price changes. Gate.io provides a pre-and-post adjustment function for Candlestick to optimize the experience. Welcome to use. *Risk warning: Please be sure to note that the digital currency market has significant Fluctuation, and leveraged ETF products can increase the price Fluctuation, leading to greater profit and loss risks. Please make sure to understand in detail and participate cautiously. Due to the existence of regular and ad hoc adjustments, the price movements over a period of time may not always match the target leverage multiple. ETF products use Hedging in the futures market, with profits resulting in Enter a Position, and losses resulting in reduce position. Daily adjustments of the leverage ratio are made to return to the target leverage multiple in the case of repeated Fluctuation in market prices. Due to the adjustment mechanism and Holdings costs, leveraged ETFs are not suitable for long-term holdings. The price of leveraged products is related to the profits and losses of ETFs caused by market fluctuations. Please follow the display of the product's net asset value and real-time leverage multiple when trading. 5x leveraged ETF products are more affected by the Fluctuation of the target currency, making regular and ad hoc adjustments more likely, resulting in greater wear and tear. Therefore, they are only suitable for short-term Hedging risks. 3x leveraged ETFs have smaller price Fluctuations and relatively less wear and tear. Please make sure to understand clearly and choose the right product. ETF products have large price Fluctuations and high risks, so please participate carefully. For detailed rules, please refer to the Leveraged ETF document in the FAQ center. Leveraged ETF Beginner's Guide (Part 1) https://www.gate.io/en/help/trade/leverage_tokens/17349 Leveraged ETF Beginner's Guide (Part 2) https://www.gate.io/en/help/trade/leverage_tokens/17369 ETF leveraged Token animation: https://www.gate.io/zh/help/trade/leverage_tokens/17416 gate Makes Wealth More Free! Thank you to every user for your support, stay tunedGate's innovative products. New users please click to register on gate. Recommend others to register for 40% commission! Click to download the iOS/Android App immediately Gate.io Community Twitter: https://twitter.com/gate_io Telegram: https://t.me/gate_io Instagram: https://www.instagram.com/gate.io/ Medium：https://medium.com/ @gateio Gate.io November 17th, 2024