Boboo will launch ETF and open the trading of BTC3L/USDT, BTC3S/USDT, ETH3L/USDT and ETH3S/USDT at 17:00 on December 3, 2020. All users are welcomed to use and experience.
Boboo will continue to provide you with outstanding products and services. Thanks for the support!
Leveraged ETF Token is a margin product based on the underlying digital asset. Through leveraged ETF Tokens, the gains and losses can be magnified. The value of leveraged ETP product is calculated in USDT. Its trading is very similar to spot trading. Leveraged ETP, essentially, is a fund in shares that are pegged with the return rate of underlying asset with certain times. Investors are able to obtain yield times more than that of the underlying asset by trading leveraged ETP products.
Advantages of leveraged ETF
- Spot trading and no need of margin
Investors can trade leveraged ETP on BKEX with the same process of spot trading. There is no margin required, so no liquidation problem. Take purchasing BTC3L (3x long of BTC) as an example. Users only need to check the net value, select the proper price, and enter purchase quantity to buy BTC3L.
- Compound-interest effect and risk limitation
The profit of the leveraged ETP product will be transferred to the principal automatically by the system. That is, if a user is gaining profit from the leveraged ETP he bought, the profit will be added to the principal in the next rebalance period (every day). As a result, the user’s position of the 3x leveraged ETP product will increase to gain compound-interest effect.
Besides, leveraged ETP brings in risk-control mechanism (refer to the details in the following part). For example, if BTC falls by 33%, the 3 times BTC long contract will be liquidated undoubtfully, while the leveraged ETP product BTC3L, through rebalance mechanism, will not approach zero. There will be some asset left.
*Investors should be aware of high price volatility in crypto markets.
*All the time and dates mentioned above are based on Universal Time Coordinated (UTC+8).