Gate.io ETF Leveraged Tokens

The name of an ETF leveraged token consists of the underlying asset, target leverage, and direction. For example:
BTC3L represents a 3x long token for BTC (L = Long).
BTC3L means a 3x leveraged token for holding a long position in the BTCUSDT perpetual futures. When you buy this token, you’re essentially going long on BTC with 3x leverage. If the price of BTC goes up by 1%, the value of BTC3L will rise by 3%.
(S stands for Short = going short).

Gate.io ETF leveraged tokens are funds managed by a professional team. Each ETF Leveraged Token corresponds to futures positions.
The fund managers dynamically adjust perpetual futures positions through a daily rebalancing mechanism, ensuring a fixed leverage multiple (e.g., 3x or 5x) to amplify returns.
On Gate.io, users do not need to trade futures directly; instead, they can simply buy and sell ETF Leveraged Tokens in the spot market to enjoy leveraged gains.
A 0.1% daily management fee is charged to cover operational costs.

ETF leveraged tokens don’t have the traditional risk of liquidation because they don’t require margin or borrowed funds.
However, if the price of the underlying asset moves significantly in an unfavorable direction, losses may occur. In this case, the platform will adjust the leverage ratio through the rebalancing mechanism to maintain the target leverage level.

Net Asset Value (NAV) represents the actual value of the fund, reflecting the fair market value of each unit of the ETF Leveraged Token held by users in the secondary market. It is also the price at which users buy and sell ETF Leveraged Tokens.
For more details, please refer to $Gate.io ETF Leveraged Tokens' NAV and Price.

ETF leveraged tokens require hedging positions in perpetual futures, which incur significant costs. Gate.io’s 0.1% daily management fee covers all associated expenses, including futures trading fees, funding rates, and spread losses.
Gate.io's ETF management fee is the lowest in the industry, and it doesn’t fully cover the operational costs—Gate.io covers the difference.

Essentially, ETF leveraged tokens provide a simpler and lower-risk leveraged trading experience compared to traditional margin trading and futures trading.
For more information, please refer to Difference between ETF Leveraged Tokens, Spot trading, Margin trading and Futures trading

ETF leveraged tokens require rebalancing because the leverage ratio of the underlying futures positions can change as the asset prices fluctuate. To keep the leverage consistent with the target, the fund manager must regularly rebalance the positions.
For more details, please refer to Gate.io ETF Leveraged Tokens' Rebalancing Mechanism.