Last week we listed four new 3x leveraged tokens (BTC3L, BTC3S, ETH3L, ETH3S) by AMUN. We are happy to announce that we are hosting a leverage ETH trading competition to support our new listing. 🎉
How can I participate?
Head to the trading competitions page and click on “Apply now” for each competition, then when trading the 3x leverage ETH pairs you will automatically be entering the pool of possible winners. At the end of the competition, the top 5 traders with the highest trading volume across all pairs (ETH3L/USDT, ETH3S/USDT) will be sharing a prize pool of up to $10,000 USDT.
Please note that we have two separate competitions on our exchange for ETH3L and ETH3S, click the button “Apply now” to enter the competition.
What and how can I win?
Ranking and prize calculation process:
- All participants will be ranked in terms of the total ETH3L and ETH3S trading volume traded on their Bitcoin.com Exchange account (including both Buys and Sells) across the ETH3L/USDT and ETH3S/USDT pairs. This sets the prize that each trader per ranking could be eligible for.
- Calculating the PnL, the prize will be matched to the profit made during the activity period.
- The top 5 winners will receive up to the prize amount, based on their ranking and profit.
Within the competition period, if you have made the equivalent of $5,100 in profit for the ETH3L/USDT pair and you were ranked 1st place in volume, then you will receive 2,500USDT.
However, if you have made the equivalent of $1,500 in profit for the ETH3L/USDT pair and you were ranked 1st place in volume, then you will receive 1,500 in USDT.
1st Place qualifies you for the biggest prize, and the full prize will be awarded if the matching profit was made. If the profit made was less than the full prize amount, then you will receive less.
Please note that if you made no profit and you are in the top 5, you will still receive 50 USDT!
For how long will the competition last?
The trading competition will last for 9 days. It starts on Friday 03/07/2020 00:00 AM (UTC) and ends 9 days later on Sunday 12/07/2020 23:59 AM (UTC).
What are Amun’s leveraged tokens?
Leveraged tokens are on a blockchain, they allow similar functionality as other tokens. You can buy, store, and transfer them like any other tokens.
Leveraged tokens are innovative ERC20 assets that can give you leveraged exposure to cryptocurrency markets, without having to deal with margin trade, liquidation, collateral, funding rates. With these tokens, you have the chance to take advantage of market volatility without having to risk your market margin!
What is the recommended holding time for leveraged tokens?
Amun’s leveraged tokens are best held for a maximum of one day as they only provide 3x or -3x notional exposure to the daily performance of Bitcoin or Ethereum. Over multiple days the tokens are subject to compounding and will not exactly track 3x or -3x of Bitcoin or Ethereum’s multi-day returns.
How can I purchase leveraged tokens?
You can purchase these tokens on the Bitcoin.com Exchange.
What are the benefits of leveraged tokens?
The tokens intend to provide a more convenient and cheaper way of obtaining various types of exposures to crypto. The aim of the leveraged tokens is to remove the hassle associated with taking margin positions on crypto exchanges.
What are the risks associated with leveraged tokens?
These tokens may not be suited for the novice user. It should be said that leverage tokens can lose significant value in a sideways market, and are not intended for long term holding. Before exposing yourself to any financial risks, make sure you understand the mechanisms of these tokens. It’s important that you read our articles about leveraged tokens and Amun’s educational section to fully understand how leverage works, especially in terms of rebalancing and compounding.
How do leveraged tokens work?
The BTC3L and ETH3L tokens maintain notional exposure to 3x of the daily returns of Bitcoin/Ether and the BTC3S and ETH3S tokens maintain notional exposure to -3x of the daily returns of Bitcoin and Ether.
For example, for every 1% BTC goes up in a day, BTC3L (Bitcoin 3x Daily Long) goes up 3%; for every 1% BTC goes down, BTC3L goes down 3%.
The inverse of the BTC3L token is the BTC3S token, which represents a 3x short exposure to the price of Bitcoin and the same for ETH3L and ETH3S which represent the price of Ether.
As such, if the price of Bitcoin goes down 1%, the BTC3S token goes up 3%, while if Bitcoin goes up 1%, BTC3S goes down 3%.
At what time exactly do they reset back to BTC/ETH’s price?
Leveraged tokens do not “reset” they rebalance at 5 PM CET. It means they adjust their exposure to ensure that they always track 3x or -3x of BTC or ETH’s DAILY returns.
For example, if ETH goes up 5% then ETH3L will go up 15% on day 1, but then it will need to be rebalanced as the increase in price would mean the token is overexposed to ETH’s movement.
What are the fees associated with leveraged tokens?
There are two categories of fees associated with these tokens
– For users minting or burning tokens: 0.1% fee associated with every transaction or a 5 USDC minimum
– For users holding tokens: 0.03% daily fee
So could I sell my tokens and buy new ones before 5pm CET when it rebalances? Or would the rebalancing still affect it somehow?
A day is defined by 5 pm CET – 5 pm CET the next day. There are trading strategies you could do where you sell at the end of the day (5 PM) and the buy after the rebalance. The best way to do this is probably through Bitcoin.com Exchange or tokens.amun.com
Terms and Conditions
- “Trading Volume” is defined as the sum of a trader’s total buys and sells (excluding wash trades) of ETH3L/USDT and ETH3S/USDT pairs on Bitcoin.com Exchange. We calculate Trading Volume in the following way: Trading Volume = Sum (executed buys of ETH3L/USDT and ETH3S/USDT pairs ) + Sum (executed sells of ETH3L/USDT and ETH3S/USDT pairs).
- The trading competition runs from Friday 03/07/2020 00:00 AM (UTC) until Sunday 12/07/2020 23:59 (UTC).
- If no profit was made and the trader is in the top 5, they will receive 50 USDT.
- Winning traders will be notified by email and rewards will be deposited to their Bitcoin.com Exchange USDTwallets within 3 weeks after the end of the promotion period.
- Participation in the $10,000 AMUN 3x Leverage ETH Trading Competition is limited to one trader account per legal or natural person. Persons found to have competed with more than one trader account will be disqualified from the competition.
- The $10,000 AMUN 3x Leverage ETH Trading Competition is hosted by FMFW Ltd (the “Bitcoin.com Exchange”) and the terms and conditions of this competition form part of the User Agreement. The Bitcoin.com Exchange reserves the right to cancel the AMUN 3x Leverage ETH Trading Competition or amend its terms or conditions unilaterally without prior notification.