**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)