Stock Token Rebase Adjustment Notice ｜ Gate

1. What Is a Stock Token Rebase Adjustment?

The underlying equity of stock tokens is pegged to real stocks. When the underlying stock undergoes corporate actions such as stock splits or reverse splits, Gate performs a Rebase adjustment to the stock token holding quantity, unit price, market data, and other information on the platform based on the corporate action results.

The core principle of a Rebase adjustment is that the holding quantity and unit price are adjusted proportionally in opposite directions, so that the total value of the user's holdings remains unchanged before and after the adjustment.

For example, if a stock token undergoes a 1-for-10 stock split:

2. Why Is a Rebase Adjustment Needed?

When the underlying stock undergoes a stock split or reverse split, the number of shares and price of the real stock will change accordingly. To ensure that the stock token remains aligned with the price of the underlying stock, Gate needs to simultaneously adjust the quantity and price of the stock token on the platform.

After the adjustment, spot trading, assets, orders, market data, and APIs on the platform will use the new post-Rebase quantities and prices. Users can trade directly based on the adjusted prices and quantities.

3. What Is a Stock Token Multiplier?

The stock token multiplier (Multiplier) is a parameter used to describe the adjustment ratio for stock token quantities and prices. It is generally based on information announced by the stock token issuer.

In a stock split scenario, the multiplier is generally greater than 1. For example, in a 1-for-10 stock split, the multiplier is 10. The user's holding quantity becomes 10 times the original amount, while the unit price becomes 1/10 of the original price.

In a reverse split scenario, the multiplier is generally less than 1. For example, in a 10-for-1 reverse split, the multiplier is 1/10. The user's holding quantity becomes 1/10 of the original amount, while the unit price becomes 10 times the original price.

4. How Will Gate Handle Related Services?

Before the Rebase adjustment, Gate will suspend trading, deposits, and withdrawals for the relevant stock token, and will wind down related services involving that stock token.

The wind-down process may include, but is not limited to:

• Canceling related unfilled spot orders. Canceled orders will not be automatically placed again;
• Suspending related margin trading and processing related loans, interest, or positions;
• Suspending order placement by related trading bots and terminating related strategies currently in operation;
• Suspending related swap transactions;
• Suspending subscriptions, redemptions, or other ongoing services for related Earn products.

The specific scope of processing and schedule are subject to Gate's official announcements.

5. How Will Trading and Assets Be Displayed After the Adjustment?

After the Rebase adjustment is completed, the Gate platform will directly use the new quantities and prices:

• Spot Trading: Users place orders based on the adjusted prices and quantities;
• Assets Page: Displays the adjusted holding quantity, unit price, and asset value;
• Open Orders: Relevant unfilled orders from before the adjustment will be canceled and will not be automatically placed again;
• Order History and Trade History: The original prices and quantities at the time of execution will be retained, and historical records will not be modified;
• Market Data Display: The order book will display the prices of new orders after services resume, while candlestick charts will be adjusted according to product rules.

6. Why Do Deposits and Withdrawals Still Involve Actual On-Chain Quantities?

Some stock tokens may use a multiplier mechanism on-chain, such as Solana Token-2022's Scaled UI Amount mechanism. This mechanism can scale the quantity displayed in the user interface without changing the actual number of tokens on-chain.

Therefore, after Gate completes the Rebase adjustment, the quantity displayed on the platform may differ proportionally from the actual on-chain quantity. Deposits and withdrawals involve interactions with on-chain wallets, so quantity conversion is still required.

The general conversion relationship is as follows:

Platform display quantity = Actual on-chain quantity x Stock token multiplier
Actual on-chain quantity = Platform display quantity / Stock token multiplier

For example, TQQQX undergoes a 1-for-2 stock split, with a stock token multiplier of 2:

Disclaimer

The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.
Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
For more information about potential risks, please refer to Gate's Risk Disclosure and User Agreement.