Announcement on the Optimization of Rebalancing Rules for Gate ETF Leveraged Tokens

To enhance the trading experience and optimize product performance, Gate will upgrade the rebalancing rules for ETF leveraged tokens at 16:00 on July 17, 2025 (UTC) . This update includes adjustments to the trigger conditions for scheduled and unscheduled rebalancing, the target leverage ratios, and the net asset value (NAV) calculation rules. Users are strongly advised to read the details carefully and manage their positions accordingly in advance.

Details of the 3X ETF Rule Adjustments:

Rule Type	Previous Rule	New Rule
Scheduled Rebalancing	At 16:00 (UTC) daily: if the real-time leverage is < 2X, > 4X, or the underlying asset’s daily price change exceeds 1% (based on index price), leverage is adjusted to 3X.	3X Long Tokens: At 16:00 (UTC) daily: no rebalancing if leverage fluctuates within 2.25X–4.125X; if it falls outside this range or if the underlying asset’s daily price change exceeds 1%, leverage is adjusted to 3X. 3X Short Tokens: At 16:00 (UTC) daily: no rebalancing if leverage fluctuates within 1.5X–5.25X; if it falls outside this range or if the underlying asset’s daily price change exceeds 1%, leverage is adjusted to 3X.
Unscheduled Rebalancing	When real-time leverage exceeds 4X, leverage is adjusted back to 3X.	3X Long Tokens: No rebalancing if leverage remains within 2.25X–4.125X; otherwise, adjusted to 3X. 3X Short Tokens: No rebalancing if leverage remains within 1.5X–5.25X; otherwise, adjusted to 3X.

Details of the 5X ETF Rule Adjustments:

Rule Type	Previous Rule	New Rule
Scheduled Rebalancing	At 16:00 (UTC) daily: if the real-time leverage is < 3.5X, > 7X, or the underlying asset’s daily price change exceeds 1% (based on index price), leverage is adjusted to 5X.	No change.
Unscheduled Rebalancing	When real-time leverage exceeds 7X, leverage is adjusted back to 5X.	No rebalancing if leverage remains within the range of 3.5X–7X; if it falls outside this range, leverage is adjusted back to 5X.

Implementation Schedule

• 16:00 on July 17, 2025 (UTC) will serve as the cutover point for the new rules.
• If a leveraged token triggers scheduled rebalancing at this exact time, the new rules will apply immediately.
• For tokens that do not meet the trigger conditions at that time, the platform will perform a one-time rebalancing based on the new rules, after which all rebalancing activities will follow the updated mechanism.

Risk Warning

The net asset value (NAV) of users' positions may change due to this rule adjustment. We recommend that users manage their positions in advance and avoid trading near the time of adjustment. ETF leveraged tokens are high-risk products. Price fluctuations may result in partial or total loss of principal. Please ensure you fully understand the updated rules and associated risks before making any trading decisions.

For more information about Gate's ETF leveraged tokens, please refer to the ETF Leveraged Tokens Help Center.

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