🔍 Gate ETF leveraged tokens "floating leverage mechanism" find the best balance between precise tracking and reducing friction.

In the investment world, a professional fund manager can help you accurately adjust your portfolio, control risks, and seize opportunities! Now, Gate's ETF leveraged tokens are your exclusive “smart fund manager,” providing you with professional-level asset management services 24/7!

Many users are curious: why do you set a leveraged fluctuation range in your rebalancing rules? How is this different from traditional fixed leverage? Today, let's talk about this more intelligent design - the floating leverage mechanism.

❓ What is “floating leverage”?

Traditional leveraged tokens typically force rebalancing daily, strictly fixing the leverage multiple at 3 times (or the target multiple). Our product, however, uses a more intelligent floating leverage mechanism:

Specific Rules:

3x Long: When the leverage fluctuates between 2.25 and 4.125 times, do not adjust the position; when the leverage breaks, adjust back to 3x;

3x short: When the leverage fluctuates between 1.5-5.25x, do not adjust the position; when the leverage breaks through, adjust back to 3x;

5x leveraged tokens: When the leverage fluctuates between 3.5-7 times, no rebalancing; when the leverage breaks above this range, the leverage multiplier is adjusted to 5X;

Core Advantages:

✅ Allow the leverage ratio to fluctuate freely within a reasonable range.

✅ Only adjust positions when the risk is too high or the deviation is too great (beyond the buffer zone)

✅ The essence is to find the best balance between precise tracking and reducing friction.

🎯 Why is “floating leverage” more user-friendly?

1️⃣ More in line with market volatility patterns

• The market itself is dynamic, and we allow leverage to fluctuate within a certain range (e.g., going long at 2.25-4.125 times), which effectively enables the product to respond more naturally to market changes and avoids excessive intervention.

2️⃣ Significantly reduce friction costs

• Every rebalancing incurs trading costs (such as spreads, fees, etc.), which are ultimately borne by the users.
• The floating leverage mechanism reduces unnecessary rebalancing, directly helping you save money!

3️⃣ Avoid the “compound interest interruption” caused by frequent rebalancing

• Traditional daily rebalancing interrupts compound interest accumulation, leading to actual returns deviating from theoretical values.
• We smooth the net value curve by reducing portfolio adjustments, achieving a more precise tracking of 3x daily returns.

4️⃣ Differentiated design for long and short positions, more scientific risk control

• The long position range is relatively narrow (2.25~4.125 times): because it is easy to experience a sharp decline after a surge, caution is needed.
• The shorting range is relatively wide (1.5~5.25 times): due to the difficulty of a rapid increase after a sharp drop, it provides more room for fluctuation.
• This is not mechanical execution, but intelligent risk control based on volatility! With a deep understanding of asymmetric market fluctuations, risk management is more refined.

📌 Summary:

ETF leveraged tokens are not just a simple rescue when users are about to be liquidated, but rather act like a professional fund manager, dynamically and intelligently managing leverage throughout the entire investment cycle: decisively reducing positions when defending, and boldly increasing positions when attacking. The ultimate goal is to maximize the efficiency of user capital while controlling extreme risks and enhancing final returns. This represents a highly valuable optimization for users pursuing trending markets and long-term holdings.

The design of floating leverage is achieved by: ✅ Expanding the range of rebalancing triggers ✅ Reducing unnecessary operations ✅ Improving tracking accuracy

In a volatile market, it retains the protective function of “reducing positions and lowering leverage” during losses, while also considering the offensive function of “increasing positions and raising leverage” during rebounds, helping users achieve a quicker turnaround from losses to profits.

If you are concerned about the frequent rebalancing and high friction costs of leveraged tokens, feel free to experience our smart floating leverage mechanism! 🚀 Gate offers you a leveraged token product with lower costs, higher credibility, and a better experience!

👉 https://www.gate.com/etf

If you have any questions, feel free to leave a message for communication!

⚠️ Risk Warning: Leverage can amplify gains/risks, please allocate reasonably according to your own risk tolerance. The above content is for reference only and is not investment advice. You can refer to more information to make reasonable investment decisions.