1. Advantages of ETF Leveraged Tokens
1.1 No deposit required
Traditional leverage contracts need to pay a certain amount of margin to open multiple times of leverage. Leverage tokens can achieve the effect of magnifying leverage without paying a deposit, but they need to pay a certain management fee.
1.2 Leverage tokens can be withdrawn at any time
The leveraged tokens 3BBULL / 3BBEAR managed by BEE NETWORK are ERC20 tokens. Unlike contract positions, users can deposit and withdraw leveraged tokens at any time. Just go to the wallet and you can withdraw the leverage token to any Ethereum wallet.
1.3 Automatic compound interest and automatic lightening
When the market encounters a unilateral rise, the return is more than three times the leverage. Because when the position is adjusted, the profit part will automatically continue to buy leveraged tokens to achieve automatic compound interest; when the market falls, it will not burst the position, but will trigger a temporary position adjustment to achieve automatic position reduction and reduce user losses.
2. Risk points of ETF leveraged tokens
2.1 Higher risk
ETF leveraged tokens have their own leveraged attributes, which is three times the increase or decrease of the underlying asset, and there is a greater risk.
2.2 Not suitable for long-term holding
Leveraged tokens are only suitable for professional investors for risk hedging, or short-term unilateral market investment, not suitable for medium and long-term investment, because of the existence of a position adjustment mechanism, the long-term risk of holding leveraged tokens is extremely high, the longer the time The greater the volatility, the more wear and tear funds.
2.3 0.3% daily management fee
ETF leveraged tokens will charge a daily management fee of 0.3%, which will be deducted from the net value and directly reflected in the currency price.
- None of the above descriptions constitute investment advice. Leverage tokens are highly volatile and are high-risk products. Before trading, you need to thoroughly read the product information and understand the basic working principle of the product. The product may bring substantial gains or losses within a single day.
- Leverage tokens greatly reduce the risk of liquidation of liquidation, but cannot be completely avoided; please pay attention to the difference between net value and price to avoid losses.