Token Symbol: ICX5L
ICON (ICX) Network is an open blockchain for general-purpose smart contract development, with a focus on providing infrastructure to support BTP with the goal of "connecting crypto to the real world and advancing our society towards true hyperconnectivity". ICON aims to reach this goal by connecting independent blockchains and enabling transactions between them. To do this, ICON uses the self-developed Loop Fault Tolerance (LFT) consensus mechanism. Built on on the Byzantine Fault Tolerant (BFT) Tendermint mechanism, LFT improves it by increasing performance through a consolidation of network messages.
ICX5L is a leveraged token that goes long on ICX with 5x leverage, which means that for every increase in the price of ICX in the market, the leveraged ICX token seeks a 5x increase in its price. ICX5L 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 ICX goes up by 1%.
Due to such rebalancing and investment costs, ICX5L 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.