gate Announces Holdings Share Consolidation and NAV Adjustment for (ALGO3S,FTT3S,CRV3S,SHIB5L,SUI3S) ETF Products

Gate.io Leveraged ETF is a trading product with leverage and automatic rebalancing mechanism. The ETF product adjusts the leverage ratio of profit and loss daily to return to the target leverage multiple. Profit will Enter a Position and loss will reduce position. Users do not need to pay Margin when trading leveraged products, they can achieve the purpose of trading leverage simply by buying and selling coins. ETF products are managed in the Perpetual Futures market with Hedging, charging a daily management fee to cover contract market fees and funding rate costs, but do not charge additional contract funding rates. By optimizing fund management, it reduces users’ actual leverage costs and leverage risks. Gate.io ETF products are traded 7x24 hours a day, and the market fluctuates greatly. In order to minimize the impact on the market and without affecting user experience, we follow the principle of minimizing the number of operations to merge or split ETF shares. Currently, the unit price of multiple ETF products is too low, affecting trading convenience and price precision. To enhance the trading experience of ETF products, we will conduct share consolidation operations on multiple ETF products around 14:00 PM (UTC+8) on January 3, 2025. This operation will affect the number of ETF holdings and unit net asset value of users, but will not affect the total value of user holdings (excluding changes in net asset value caused by fluctuations in the underlying asset prices during the operation). The specific operation rules are as follows:

1. The ALGO3S product shares will be merged at a ratio of 100:1, and the user’s position will be reduced to 1/100 of the previous amount, with the unit net value increasing by 100 times. 2）FTT3S product shares are merged at a ratio of 100:1, and the user’s position will be reduced to 1/100 of the previous amount, while the unit net value will increase by 100 times. 3） CRV3S product shares will be merged at a ratio of 100:1, and the user’s position will be reduced to 1/100 of the previous amount, while the unit net value will increase by 100 times.
2. SHIB5L product shares are merged at a ratio of 100:1, and the user’s position will be reduced to 1/100 of the previous amount, while the unit net value will increase by 100 times.
3. If the shares of SUI3S products are merged on a 100:1 basis, the user’s position will be reduced to 1/100 of the previous one, and the net value of the unit will increase by 100 times.
4. After the merger of shares, the corresponding product market will be reopened for trading. Please be sure to note that after the market resumes, the market price will change significantly according to the new net asset value, so be mindful of price changes when placing orders.
5. After the share merger, the K-line data will jump due to price changes. Gate.io provides pre and post-K-line adjustment function to optimize the experience. Welcome to use. *Risk Warning: Please be aware that the digital currency market is highly volatile, and leveraged ETF products can amplify price fluctuations, leading to greater profit and loss risks. It is essential to have a detailed understanding and exercise caution when participating. Due to the existence of regular and ad-hoc rebalancing, the price fluctuations over a period of time may not always match the target leverage multiple. ETF products hedge through the futures market, realizing profits by entering a position, and reducing positions in case of losses. The leverage ratio is adjusted daily to return to the target leverage multiple based on the profit and loss, which incurs significant erosion in the case of repeated market price fluctuations. 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 profits and losses of ETFs caused by market fluctuations. Please pay attention to the display of the product’s net asset value and real-time leverage multiple when trading. 5x leveraged ETF products are more affected by the fluctuations of the target currency, making them more susceptible to regular and ad-hoc rebalancing operations, resulting in greater erosion. Therefore, they are only suitable for short-term hedging risks. The 3x leveraged ETF has smaller price fluctuations and relatively less erosion, so it is crucial to understand clearly and choose the appropriate product. ETF products have large price fluctuations and high risks, so please participate with caution. For detailed rules, please refer to the Question Center Leveraged ETF Documentation: Leveraged ETF Beginner’s Guide (Part 1) https://www.gate.io/zh/help/trade/leverage_tokens/17349 Introduction to Leveraged ETFs for Beginners (Part 2) https://www.gate.io/zh/help/trade/leverage_tokens/17369 ETF Leveraged Token Animation: https://www.gate.io/zh/help/trade/leverage_tokens/17416 Gate.io Make wealth more free! Thank you for your support, and stay tuned for Gate’s innovative products. For new users, please click on the Register Gate.io. Old users refer others to register and get 40% commission! Click here to download the app for iOS/Android now 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 January 2, 2025