gate Announcement on the merger of holdings and adjustment of net asset value for (LTC5S, LINK5S, EOS3S, CAKE3S, ATOM3S) 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 multiple by tracking the daily profit and loss. It opens positions for profits and reduces positions for losses. Users do not need to pay margin when trading leveraged products, they can achieve the purpose of leveraged trading through simple buying and selling of coins. The ETF product manages hedging in the Perpetual Futures market and charges a daily management fee to offset the cost of contract market fees and funding rates, but 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 and the market fluctuates greatly. In order to minimize the impact on the market with the minimum number of operations, we will merge or split ETF shares based on the principle of minimizing the number of operations without affecting user experience. Currently, the unit prices of multiple ETF products are too low, affecting trading convenience and price accuracy. In order to enhance the trading experience of ETF products, we will carry out share consolidation operations on multiple ETF products around 14:00 PM (UTC+8) on December 17, 2024. This will affect the quantity and unit net value of users' ETF holdings, but will not affect the total value of users' holdings (excluding the net value changes caused by fluctuations in the underlying asset prices during the operation period). The specific operation rules are as follows: 1）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, while the unit net value will increase by 1000 times. 2) The LINK5S 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. 3) 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, with a unit net value increase of 1000 times. 4) 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 unit net value will increase by 1000 times. 5) The share of ATOM3S products will be merged at a ratio of 1000:1, and the user's position will be reduced to 1/1000 of the previous amount, and the net asset 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 cautious of price changes when placing orders. 7) After the share consolidation, the K-line data will have gaps due to price changes. Gate.io provides K-line before and after adjustment function to optimize the experience. Welcome to use. *Risk Warning: Please be aware that the cryptocurrency market is highly volatile. Leveraged ETF products can increase price fluctuations, leading to greater risks of profit and loss. It is important to fully understand and participate cautiously. Due to the existence of scheduled and ad-hoc adjustments, the price fluctuations over a period may not always match the target leverage multiple. ETF products hedge through the contract market, profit by entering a position, and reduce position in case of losses. Daily adjustments of profit and loss are made to return the leverage ratio to the target multiple. In the case of frequent market price fluctuations, significant erosion may occur. Due to the rebalancing mechanism and holding costs, leveraged ETFs are not suitable for long-term holding. The price of leveraged products is related to the profit and loss of ETFs caused by market fluctuations. When trading, pay attention to the display of the product's net asset value and real-time leverage multiple. 5x leveraged ETF products are more affected by the fluctuations of the target currency, making scheduled and ad-hoc adjustments more likely, resulting in greater erosion. Therefore, they are only suitable for short-term hedging risks. 3x leveraged ETFs have smaller price fluctuations and relatively lower erosion. It is important to understand clearly and choose the right product. 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. 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/en/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 the support of every user, and look forward to the innovative products of Gate. New users please click to register on Gate.io. Existing users can recommend others to register and receive a 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 Gate.io December 16, 2024