Token Symbol: ALGO3L
ALGO3L is a leveraged token that goes long on ALGO with 3x leverage, which means that for every increase in the price of ALGO in the market, the leveraged ALGO token seeks a 3x increase in its price. ALGO3L is required to maintain its target leverage and does so through dynamic rebalancing to gain a net value increase by 3% when the price of ALGO goes up by 1%.
Due to such rebalancing and investment costs, ALGO3L 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.
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.