1. What is a “Leveraged Bear”
“Leveraged Bear” is a leveraged buying short investment product. You can invest in digital assets as principals, select appropriate leverage and obtain the “Leveraged Bear” position. You will gain a maximum leveraged profit of 1.1~5 times as BTC/USDC price falls while bearing the loss of the same multiple as BTC/USDC price rises.
Due to the uncertainty in the borrowed rate market, Matrixport reserves the right to adjust the borrowed rate for outstanding orders.
2、Product Advantages
① Highly secured：Banking-grade custody for ultimate assets protection.
② Multiplied P&L: Get up to 3x P&L as the market fluctuates.
③ Flexibility: Low-borrowed rate that is calculated on an hourly basis, you can close the position at any time as you desire.
④ Convenience: User-friendly navigation, seize the market opportunity to complete the transaction with just one click
3、Profit and Loss
Assume the trading margin is 10,000 USDC, with 3x leveraged. Suppose 1 BTC=10,000 USDC at the beginning of the transaction, then the price falls to 1 BTC=5,000 USDC
- If you did not buy the Leveraged Bear, the position value will remain unchanged.
- If you buy the Leveraged Bear, the position value will increase from 10,000 USDC to 30,000 USDC. After repaying the borrowed assets which value at 2 BTC, the value of your net assets will be 20,000 USDC, generating a net profit of 100%.
4、Interest Calculation
Interest Calculation
Borrowed Principal = Margin *(Leverage-1)/Sell Price. You can redeem your margin at any time.
Loan interest = Borrowed principal * hourly borrowed rate* actual financing hours. We calculate and update interest by the hour. If it is less than one hour, it is calculated as one hour.
Due to the uncertainty in the borrowed rate market, Matrixport reserves the right to adjust the borrowed rate for outstanding orders.
5、Risk Rate
Risk Rate = Principal and Interest to be Repaid / Position Value (BTC denominated) * 100%.
Risk Rate changes as the price of holding assets fluctuate.
6、Warning and Liquidation
① When the Risk Rate >= 80%, you will receive an alert notification via email / SMS to remind you to call margins in time. Users can top up the margin to reduce the Risk Rate
② When the risk rate >=90%, it will trigger mandatory liquidation and a corresponding service fee will be imposed. Liquidation Service Fee = Liquidation Value * 0.4% Liquidation Price = 90% * Position / (Principal+Interest)