Binance Leveraged Quiz Tokens Test & Answers 2021
1. What is Binance Leveraged Tokens? Answer: Binance Leveraged Tokens is a financial derivative which is similar in nature to traditional leveraged ETFs. Their net asset value may be greatly worn out by short-term market fluctuations. Long term holding of Binance Leveraged Tokens is risky and users should minimise the losses by selling the leveraged tokens from time to time. 2. What is the leverage multiplier for Binance Leveraged Tokens? Answer: The system maintains a target leverage range between 1.25x and 4x. 3. When does Binance Leveraged Tokens rebalance? Answer: When the market is volatile or the actual leverage multiplier is out of the target leverage range. 4. What is the worst case scenario of holding Binance Leveraged Tokens on a long term basis? Answer: The value of Binance Leveraged Tokens can become zero (0) and cannot be recovered due to inherent market risks, high fees, slippage, rebalance algorithm frontrunning and any other perceived unknown risks associate