To celebrate the listing and the launch of the new AMUN 3x Leveraged Tokens, enjoy fee-free trading* in the leveraged tokens for a limited time.
Leveraged tokens can provide some peace of mind if you don’t want to worry about liquidation on positions. These tokens are much better during strong trending periods, due to the daily rebalancing and compounding effect, which would otherwise need to be done manually in order to achieve the same result. By buying or selling these leveraged tokens, you do not have to deal with margin trade, liquidation, collateral, funding rates.
What pairs are included in the fee-free trading promotion?
- BTC3L/USDT (Bitcoin 3x Daily Long)
- BTC3S/USDT (Bitcoin 3x Daily Short)
- ETH3L/USDT (Ether 3x Daily Long)
- ETH3S/USDT (Ether 3x Daily Short)
For how long can we trade fee-free for these leveraged tokens?
Start date: Thursday, June 25th, 2020 10:00 UTC
End date: Sunday, June 28th, 2020 23:59 UTC
What time frame are these tokens best traded in?
They are best held and traded within a time frame equal to one day or less, so perfect for active traders.
How do these leveraged tokens work?
Leveraged tokens maintain a notional exposure to 3x or -3x of the daily returns of a crypto asset like Bitcoin or Ethereum. For example, if Bitcoin were to rise by 3% on a single day then BTC3L (Bitcoin 3x Daily Long) would aim to rise by 9% on the same day. However, if Bitcoin were to fall by 3% then BTC3L would aim to fall by 9%.
At what time exactly do they reset back to BTC/ETH’s price?
They don’t “reset” they rebalance at 5 PM CET. This means they adjust their exposure to ensure that they always track 3x or -3x of BTC or ETH’s DAILY returns.
For example, if BTC goes up 5% then BTC3L 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 BTC’s movement.
Please could you give a more real-life example?
What would happen to the prices of BTC3L and Bitcoin 3x Daily Short (BTC3S) tokens if Bitcoin’s price over 3 days is as follows: Day 0 — $100, Day 1 — $103, Day 2 — $106.09, in other words, two days of Bitcoin increasing by 3%. We assume that Bitcoin, BTC3L, and BTC3S all begin day 0 at a price of $100.
The table below shows the assets’ return profile over those days.
As we can see, both BTC3XLONG and BTC3XSHORT track 3x and -3x of Bitcoin’s returns over a single day. Please note that these tokens do not track 3x or -3x of Bitcoin’s returns over multiple days.
For example, it’s easy to see that the two-day return of BTC3L (18.81%) is actually more than 3x of Bitcoin’s (6.09%) and the two-day return of BTC3S (-17.19%) is actually less than -3x of Bitcoin’s. This phenomenon is due to the compounding of our inverse and leveraged tokens and can be beneficial in situations where the market is following a trend but harmful in periods of mean reversions. The chart below replicates the data from the table above to further show the point.
Learn more about Amun’s leveraged tokens here. Get ready to trade these tokens on our exchange from June 25th for free!
*0% Maker fee and 0.01% Taker fee