GateUser-18f51a12

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GateUser-18f51a12

2025-10-11 09:13

#DOGE5S What is happening here, customer service, what exactly is going on?

DOGE5S10,36%

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YeFan

Hello, around 5 AM (UTC+8) on October 11, 2025, the market experienced severe fluctuations, resulting in a rapid deep V trend, causing both S (shorting) and L (go long) leveraged tokens to decline simultaneously. It is normal for S (shorting) and L (go long) leveraged tokens to drop together during the intense oscillation of the "deep V" market. This is a typical case of "volatility decay" under high volatility conditions, which is an inherent characteristic of leveraged tokens. It calculates the compounded rise and fall after each rebalancing period; the rise and fall are not simply linearly superimposed but are the result of "path dependency." Suppose the underlying asset first falls by 20%, then rises by 25% (returning to the starting point): 3x go long (L) token: first falls by 60%, net value remains 0.4, then rises by 75%, net value changes to 0.7, a loss of 30%. 3x shorting (S) token: first rises by 60%, net value 1.6, then falls by 75%, net value changes to 0.4, a loss of 60%. Even if the price of the underlying asset returns to the origin, the leveraged tokens often experience a decline in net value due to compounding effects and path dependency.

GateUser-18f51a12

2025-09-28 06:22

#KAITO3L Why is it not rising? Please answer Gate.

KAITO3L-1,21%

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