ETF Risk Disclosure

ETF Risk DisclosureETF trading is an investment activity that carries significant risks. While generally considered lower risk than contracts or other derivatives, the inherent leverage in ETFs means they are not low-risk products. Incorrect investment decisions can still lead to substantial losses.1. ETFs Are Not Suitable for Long-Term HoldingETFs are subject to inherent market risks, as well as ongoing costs such as management fees and the structural decay caused by rebalancing. The longer an ETF is held, the greater the potential impact of this decay. Combined with unforeseen market risks, this could even lead to the ETF’s net asset value (NAV) declining to zero and the product being delisted. Investors intending to hold ETFs long-term do so at their own risk.2. Price Deviation from NAVThe market price of an ETF fluctuates around its net asset value. During periods of high volatility, the market price may deviate significantly from the NAV. Investors holding ETFs during such times face the risk of capital erosion. It is advisable to avoid trading when the deviation between price and NAV is large.3. Volatility DecayETF products are susceptible to volatility decay, particularly in sideways or fluctuating markets.For example:If BTC experiences daily changes of +5%, -5%, +5%, and -5% over four days, the cumulative change in BTC would be -0.50%. However, a 3x leveraged ETF like BTC3L or BTC3S could see a cumulative change of approximately -4.45%—greater than three times the underlying asset’s return.Thus, in volatile or trendless markets, ETFs may experience erosion of NAV.Additionally, during extreme market movements, if the underlying asset’s price change exceeds a predefined threshold since the last rebalancing, a forced intraday rebalance may be triggered for leveraged or inverse ETFs to manage risk. This process may also contribute to NAV decay.Please ensure you fully understand the risks associated with ETF products and assess your personal risk tolerance before engaging in trading or holding these instruments. Trade with caution.