$UB3S When the main coin price rises, 4x leverage; when it falls, 1.67x leverage?

UB3S-23.75%
View Original
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 2
  • Repost
  • Share
Comment
Add a comment
Add a comment
GateUser-c15a0a59
· 4h ago
Still don't buy this one, it dropped more than three times, but only went up a little over once.
View OriginalReply0
TheSmallLeekWaitingToBe
· 4h ago
1. Leverage is not fixed; it is "dynamic"
It won't always be 3x; it fluctuates with the price of the coin, only being forcibly pulled back to 3x during fixed times (such as daily rebalancing).

2. Your current situation: you made money from shorting, so the leverage has decreased
You are using 3x short tokens (UB3S). When the coin price drops and you make money, your net asset value increases, but the system hasn't added to your position yet, so the leverage is "diluted," dropping from 3x to 1.67x.

3. Conversely, if you lose money, the leverage will actually increase
When the coin price rises and you lose on your short, your net value decreases, but your position remains the same, causing the leverage to passively increase, even exceeding 3x. The system will quickly reduce your position to bring it back, preventing liquidation.
View OriginalReply0
  • Pinned