gate Announcement on the merger of holdings and NAV adjustment of (LTC5S, LINK5S, EOS3S, CAKE3S, ATOM3S) ETF products

Gate.io leveraged ETF is a trading product with leverage properties and automatic rebalancing mechanism. The ETF product adjusts the leverage ratio to the target leverage multiple by tracking the daily profit and loss. It will open positions when making profits and reduce positions when making losses. Users do not need to pay margin when trading leveraged products, they can achieve leverage trading by simply buying and selling coins. The ETF product is managed through hedging in the Perpetual Futures market. It charges a daily management fee to cover the costs of contract market fees, funding rates, and other expenses. However, it does not charge additional contract funding rates. Through fund management optimization, it reduces users' actual leverage costs and leverage risks. Gate.io ETF products are traded 7x24 hours a day, and the market fluctuates greatly. 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 minimizing the number of times. Currently, the unit price of multiple ETF products is too low, which affects the convenience of trading and price accuracy. In order to improve the trading experience of ETF products, we will conduct share consolidation operations on multiple ETF products around 14:00PM (UTC+8) on December 17, 2024. This will affect the quantity of ETF holdings and the net asset value per unit for users, but will not affect the total value of user holdings (excluding changes in net asset value caused by fluctuations in the underlying asset prices during the operation period). The specific operating rules are as follows:

1. The LTC5S 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, with the unit net value increasing by 1000 times. 2）The LINK5S product share will be merged at a ratio of 1000:1, and the user's position will be reduced to 1/1000 of the previous amount, with the unit net value increasing by 1000 times.
2. EOS3S 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.
3. The CAKE3S 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.
4. The ATOM3S product shares will be merged at a ratio of 1000:1, and the user's holding will be reduced to 1/1000 of the previous amount, with the unit net value increasing by 1000 times. After the merger of the shares, the corresponding product market will be reopened. Please be sure to pay attention to the significant price changes that will occur according to the new net asset value when the market resumes. Be careful of the price changes when placing orders.
5. After the merger of shares, the K-line data will have discontinuities due to price changes. Gate.io provides the pre- and post-adjustment function of K-line to optimize the experience, please feel free to use it. *Risk Warning: Please be aware that the cryptocurrency market is highly volatile, and leveraged ETF products can amplify price fluctuations, resulting in greater risks of profit and loss. Due to the existence of scheduled and ad hoc rebalancing, the percentage change in a certain time span may not always match the target leverage multiple. ETF products will Open Position to profit and reduce position to offset losses through hedging in the futures market, and adjust the leverage ratio back to the target leverage multiple on a daily basis in the event of repeated market price fluctuations. This process can result in significant wear and tear. Due to the rebalancing mechanism and holding cost, leveraged ETFs are not suitable for long-term holdings. The price of leveraged products is related to the profits and losses of the ETF caused by market fluctuations. Please pay attention to the display of product net asset value and real-time leverage ratio when trading. The 5x ETF product is more affected by the rise and fall of the target currency, and is more likely to undergo scheduled and ad hoc rebalancing, resulting in greater wear and tear. Therefore, it is only suitable for short-term hedging risks. The 3x ETF has smaller percentage changes, and relatively smaller wear and tear. Please make sure to understand the products and choose the right one. ETF products have large percentage changes and high risks, so please participate with caution. 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/zh/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 to every user 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 16, 2024