Why is SHIB5L not showing the accurate price to reflect the rise of the primary coin SHIB?


Gate io Admin, please address this
SHIB5L-6.82%
SHIB-1.02%
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XiaoYivip
· 2024-04-12 21:56
Hello, leveraged tokens have an occasional rebalancing mechanism: when the real-time leverage exceeds 3 times, the occasional rebalancing will be triggered, and the leverage will be adjusted to 2.3 times through the rebalancing mechanism. Because of the existence of regular rebalancing and temporary rebalancing, the rise and fall of a period of time is not always the target leverage. ETF products are hedged through the perpetual contract market, profits will be opened, losses will be reduced, and the leverage ratio will be adjusted back to the target leverage ratio according to the profit and loss every day, which will wear out a lot in the case of repeated fluctuations in market prices. Due to the rebalancing mechanism and holding costs, leveraged ETFs are not suitable for long-term holding. ETF products have a large range of ups and downs and high risks, so please be cautious to participate.
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