Publish on 2023-03-24
Token Symbol: ARB5L
ARB5L is a leveraged token that goes long on ARB with 5x leverage, which means that for every increase in the price of ARB in the market, the leveraged ARB token seeks a 5x increase in its price. ARB5L is required to maintain its target leverage and does so through dynamic rebalancing to gain a net value increase by 5% when the price of ARB goes up by 1%.
Due to such rebalancing and investment costs, ARB5L may suffer a net value loss when the market fluctuates. Please note, AscendEX’s leveraged tokens are not suitable for long-term investment. Investors must be cautious while investing in leveraged tokens and manage their investment risks in a timely manner.
Learn more about Arbitrum (ARB)
Leveraged tokens differ from regular tokens for spot trading in that there is higher risk and volatility, which could bring about great returns or losses in a single day. Please learn more about leveraged tokens in our help center before making an investment.