Hello everyone :) I know that leveraged tokens (ETF) are very

risky but I’m ready to take the risk.

I want to calculate approximately, how much can I lose with leveraged tokens fees if the market still in this range for one year?
I want to invest $5.000 to buy ETHBULL (x3) at $2.700 Ethereum price.
Suppose, the market goes +10% -10% +10% -10%.... Finally, after one year Ethereum price still $2.700.

1. There is a 0.10% creation and redemption fees: $5.000 % 0.10 = $5
2. There is a 0.03% daily management fees: $5.000 % 0.03 = ~$1.5 x 365 = $547,5.

I want to know if my calculation is approximately correct and I want to be sure if there isn’t other hidden fees due to rebalancing mechanism? If yes, how can they affect my invested amount ($5.000) please?

Thank you :)

Hi, you don't need to go through creation/redemption, you can just buy on spot. There's no hidden fee but yes rebalancing can affect your position. You can read the well detailed guide here: https://help.ftx.com/hc/en-us/articles/360032509552-Leveraged-Token-Walkthrough-READ-THIS-

Hi Roland, Thank you for your response. I already check your link but it's a little complicated. How much the rebalancing can affect my balance in pecent please ? Example: With $5.000 for one year with ETHBULL in the same range. With 0.03% fee I lose ~10% (for one year). And rebalancing, how much can affect my balance (approximately please). 1-3% or 4-6% or much more? Thank you.

As a rule of thumb, leveraged tokens are better when price goes up or down but are worst in ranges because rebalancing is calculated from the lastest price everyday whereas a x3 long, from the original price. In your example I think it would be approx - 2.8% in 2 days but that's very very unlikely ETH doing +10% and then revert non stop every 2 days for a year. In theory much less.

Thanks Roland, Seriously? Fees takes 0,03% per day only but rebalancing can take ~2% or more from my balance in 2 days only ? 2 days only.... 😱 I'm worried 🥲 So, if the market still in the same range for tow months a lose all my $5.000 in few weeks only ?

I told you this scenario is completely improbable but this is the example you gave. In theory it will be much less. Please read again the example section, you have an example comparing with a 3x long : https://help.ftx.com/hc/en-us/articles/360032509552-Leveraged-Token-Walkthrough-READ-THIS-

these are high risk derivatives and should only be used if you completely understand their implications

Hi there, I deposited 100 BUSD yesterday and wanted to buy GMT coin, I input 100% of the USD into order but got only 28 GMT coins( for 97 USD). Now I'm trying to sell 28 GMT, but it let me sell only 27 GMT. What is the problem? Why cant I buy or sell full amounts?

Maybe because of tick size. Can use convert feature for left over

Thaks Roland, I already checked this link many many to try to understand, but still not clear about rebalencing impact on balance. For fee it's very clear. To explain how it works Bull and Bear very clear. But not clear at all how rebalencing affect my invests.

Ok with an example and your 5000$ you wanted to invest. Let's say ETH trades at $3000 today and tomorrow $3150 and the day after (day 3) returns to $3000 If you had a long x3 opened today, after day 3, your pnl would be 0. 5000$. No profit no loss. (not taking into account funding) With ETHbull, at the end of day 2 you'd be +15%(5% with x3 leverage) = 5750$ but on day 3 with rebalancing when ETH reverts, it will be -14.3% from 5750.  -14.3% comes from (3150/3000-1)*3*100 At the end of day 3, you would be down approx -1.4% because 5750 - 14.3% = 4927.75$ 4927.75/5000-1 = -1.445% Sorry I can't help more than that, hope that helps. 

Another one bites the dust...! Banned M. Reason: This group is only for support thanks