BTC5S Leveraged Tokens

BTC5S is a derivative product that tracks the price movements of BTC. It is designed to provide 5x leveraged short exposure to the return of BTC. For example, if the price of BTC decreases by 1%, the NAV of BTC5S will rise by 5%.

BTC5S amplifies gains and losses through leverage and maintains 5x leverage by rebalancing using perpetual contract hedging (adding positions when in profit and reducing positions when in loss). This mechanism may cause performance to deviate from expectations. Due to the rebalancing process, the NAV may decay more rapidly in volatile markets. Therefore, leveraged tokens are only suitable for short-term trading or professional hedging, and are not appropriate for long-term holding.

To enhance the trading experience and optimize price precision, Gate will periodically conduct consolidation for leveraged tokens. During the consolidation process, trading will be temporarily suspended. Users' holdings will be reduced to 1/1000 of the original amount, while the NAV per unit will increase by 1000 times. The total value of users' holdings will remain unchanged.

Risk Warning: Leveraged tokens are high-risk products with greater volatility. These products may result in significant returns or losses within a single day. Please read the related articles in the Help Center carefully before trading.