Index Coop Bitcoin 2x Index

Index Coop 2x tokens utilize a range-bound methodology. With a range-bound methodology, rebalancing occurs when the current leverage ratio is less than the minimum or greater than the maximum leverage ratio. Based on backtest data, this methodology results in less frequent rebalancing and tracking error compared to the legacy FLIs.

The range-bound methodology has two benefits: 

1. Automated rebalancing should be less frequent compared to the legacy FLIs, resulting in less volatility decay over time for token holders and improved tracking of the target leverage ratio. Gas costs for rebalancing, which are covered by the Index Coop, may be relatively reduced.
2. Second, the minimum leverage ratio is set to the square of the target leverage ratio over the maximum leverage ratio. This means that equivalent-sized moves to the upside or downside will result in a rebalance.

The Index Coop Bitcoin 2x Index will automatically rebalance anytime the current leverage ratio moves outside of the range defined for the product.

Any changes to the methodology or product parameters will be made publicly available and voted on by $INDEX holders before implementation.

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Streaming Fee: 3.65%

Mint Fee: 0.10%

Redeem Fee: 0.10%

The following risks may apply to this digital asset: full or partial loss of digital assets due to technical hacks, exploits, or failures that may occur at the protocol or smart contract level of a product’s infrastructure; restrictions placed on the digital assets by regulatory authorities in the end users region; loss of digital assets or loss of access to the digital assets due to decisions made by centralized providers of the underlying assets; full or partial loss of digital assets through standard product operations which can be hampered by unexpected market conditions; full or partial loss of digital assets due to changes to underlying product assets made by the originating protocols; full or partial loss of digital assets due to volatility, correlation, value at risk, and contagion risks; underperformance of digital assets due to deviation from intended mBTCodology; full or partial loss of digital assets due to the variability of an assets price; full or partial loss of digital assets due to deviation from the proposed mBTCodology and volatility decay incurred during rebalancing; full or partial loss of digital assets due to liquidation of the position in the event of product malfunctions.