gate Announcement on the merger of Holdings shares and net asset value adjustment for (XRP5S, EOS5S, GALA5S, HBAR3S, DOT5S) ETF products

Gate.io Leveraged ETF is a trading product with leverage and automatic rebalancing mechanism. The ETF product adjusts the leverage ratio to the target leverage multiple by tracking the daily profit and loss. Profit will enter a position, while loss will reduce position. Users can achieve leveraged trading by simply buying and selling coins without paying margin when trading leveraged products. The ETF product manages hedging in the Perpetual Futures market and charges a daily management fee to cover the costs of contract market fees and funding rates. However, no additional contract funding rates are charged. Through fund management optimization, it reduces users' actual leverage costs and leverage risks. Gate.io ETF products are traded 24/7 and the market volatility is high. In order to minimize the impact on the market and without affecting the user experience, we will merge or split the ETF shares based on the principle of minimal frequency. Currently, the unit price of multiple ETF products is too low, which affects trading convenience and price precision. In order to improve the trading experience of ETF products, we will merge the shares of multiple ETF products around 14:00 PM (UTC+8) on December 13, 2024. This will affect the number of ETF holdings and the net asset value per unit for users, but it will not affect the total value of user holdings (excluding changes in net asset value caused by fluctuations in the underlying prices during the operation period). The specific operating rules are as follows: 1）XRP5S product shares will be merged at a ratio of 10000:1, and the user's position will be reduced to 1/10000 of the previous amount, with the unit net value increasing by 10000 times. 2) The EOS5S product shares will be merged at a ratio of 10,000:1, and the user's position will be reduced to 1/10,000 of the previous amount, with the net asset value increasing by 10,000 times. 3) The GALA5S product shares will be merged at a ratio of 10000:1, and the user's position will be reduced to 1/10000 of the previous amount, while the unit net value will increase by 10000 times. 4) The HBAR3S product shares will be merged at a ratio of 1000:1, and the user's position will be reduced to 1/1000 of the previous amount, while the net asset value will increase by 1000 times. 5) The DOT5S product shares will be merged at a ratio of 1000:1, and the user's position will be reduced to 1/1000 of the previous amount, while the unit net value will increase by 1000 times. 6) After the share consolidation, the corresponding product market will be reopened for trading. Please be sure to note that after the market resumes, the market price will undergo significant changes according to the new net asset value. Be careful of the price changes when placing orders. 7) After the merger of shares, the K-line data will have gaps due to price changes. Gate.io provides the pre- and post-adjustment function of K-line to optimize the experience. You are welcome to use it. *Risk Warning: Please be aware that the digital currency market is highly volatile. Leveraged ETF products may amplify price fluctuations, leading to greater profit and loss risks. Please make sure to fully understand and participate cautiously. Due to the existence of regular and ad-hoc position adjustments, the price fluctuations over a period of time may not always match the target leverage multiple. Through hedging in the futures market, ETF products will enter a position for profit and reduce position for loss. The leverage ratio is adjusted daily to return to the target leverage multiple based on the daily profit and loss, causing significant erosion in the event of repeated market price fluctuations. Due to the position adjustment mechanism and holding costs, leveraged ETFs are not suitable for long-term holding. The price of leveraged products is related to the ETF's profit and loss caused by market fluctuations. Please pay attention to the display of the product's net asset value and real-time leverage multiple when trading. 5x ETF products are more affected by the fluctuations of the target currency, making regular and ad-hoc position adjustments more likely and resulting in greater erosion. Therefore, they are only suitable for short-term hedging risks. 3x ETFs have smaller price fluctuations and relatively lower erosion, so please make sure to understand clearly and choose the appropriate products. ETF products have large price fluctuations and high risks, so please participate with caution. For detailed rules, please refer to the Leveraged ETF document in the FAQ center. Introduction to Leveraged ETFs for Beginners (Part 1) https://www.gate.io/en/help/trade/leverage_tokens/17349 Leveraged ETF Beginner's Guide (Part 2) https://www.gate.io/zh/help/trade/leverage_tokens/17369 ETF leveraged token animation: https://www.gate.io/zh/help/trade/leverage_tokens/17416 Gate.io makes wealth more free! Thank you for your support, and stay tuned for Gate's innovative products. New users please click to register on Gate.io. Existing users recommend others to register and get 40% commission! Click to download the iOS/Android version 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 gateio December 12, 2024