1. Convenient operations with no requirement on margin
Buying KuCoin Leveraged Tokens bears exactly the same way as trading in the spot market. Investors shall only buy or sell those tokens in the secondary market (or subscribe or redeem in the primary market, however, it is not recommended for new users).
Investors do not need to pay margin or borrow funds to try margin trade!
2. Dynamic rebalancing mechanism helps control risks and magnifies profits.
A dynamic rebalancing mechanism is designed for KuCoin Leveraged Tokens (click here for more details), which helps control risks and magnifies profits!
If investors go 3x long BTC in the margin market, when the BTC price decreases by 33%, they will face liquidations and lose all their funds. However, with the dynamic rebalancing mechanism, that tragedy will not happen. Even more, if the BTC price climbs up afterwards, the price of BTC3L will also increase, so there is still an opportunity to turn the negative profits into positive! Thanks to the mechanism, the system will automatically incorporate the profits into the original sum of investment and keeps the leverage at a fixed multiple to ensure the profit is compounded.