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Important Updates to Binance Leveraged Tokens (2021-03-25)

Binance
2021-03-25 12:47
Fellow Binancians,
To provide a better trading experience for our users, AAVEDOWN, DOTDOWN, ADADOWN, XRPDOWN, LINKDOWN will undergo a 10,000-for-1 reverse token split. The reverse token split process will take approximately 24 hours, with the following timeline:
AAVEDOWN, DOTDOWN
10,000 AAVEDOWN (before the reverse split) = 1 AAVEDOWN (after the reverse split)
10,000 DOTDOWN (before the reverse split) = 1 DOTDOWN (after the reverse split)
  • At 2021-04-06 03:00 AM (UTC), we will suspend trading, subscription, and redemption of AAVEDOWN and DOTDOWN tokens. All existing trade orders will be canceled. We will then take a snapshot of token balances in users’ accounts and begin the reverse token split of tokens at a ratio of 10,000:1.
  • At 2021-04-07 03:00 AM (UTC), new AAVEDOWN and DOTDOWN balances will be updated, and we will open trading for AAVEDOWN/USDT and DOTDOWN/USDT. Subscription and redemption functions for tokens will also be opened at this time.
ADADOWN, XRPDOWN, LINKDOWN
10,000 ADADOWN (before the reverse split) = 1 ADADOWN (after the reverse split)
10,000 XRPDOWN (before the reverse split) = 1 XRPDOWN (after the reverse split)
10,000 LINKDOWN (before the reverse split) = 1 LINKDOWN (after the reverse split)
  • At 2021-04-07 03:00 AM (UTC), we will suspend trading, subscription, and redemption of ADADOWN, XRPDOWN, and LINKDOWN tokens. All existing trade orders will be canceled. We will then take a snapshot of token balances in users’ accounts and begin the reverse token split of tokens at a ratio of 10,000:1.
  • At 2021-04-08 03:00 AM (UTC), new ADADOWN, XRPDOWN, and LINKDOWN balances will be updated, and we will open trading for ADADOWN/USDT, XRPDOWN/USDT, and LINKDOWN/USDT. Subscription and redemption functions for tokens will also be opened at this time.
About Reverse Token Split
A reverse token split is a process that consolidates the existing number of issued tokens into a smaller number of proportionally more valuable tokens.
For example, based on the ratio of 10,000 AAVEDOWN (before the reverse split) = 1 AAVEDOWN (after the reverse split), if the total number of issued AAVEDOWN tokens is 100 billion tokens before the reverse token split, the total number of issued AAVEDOWN tokens after the reverse token split will be 10 million tokens. If a user holds 1,000,000 AAVEDOWN tokens before a 10,000-for-1 reverse token split, the user would end up holding 100 AAVEDOWN tokens after the reverse token split.
Important Notes:
  • During this 24-hour reverse token split process, any changes in net asset value (NAV) of tokens might be reflected on token’s NAV K-line graph, for example NAV K-line graph of AAVEDOWN Please be noted that the NAV of tokens might be incorrect due to the reverse token split process.
  • It is strongly recommended for token holders to re-assess their holding risk before the start of the reverse token split process to mitigate against the price fluctuations that may occur during the reverse token split process. Users are advised to trade or redeem their tokens into USDT before the start of the reverse token split process. For more information, please refer to this guide: About Binance Leveraged Tokens.
  • If users are holding AAVEDOWN or DOTDOWN tokens after 2021-04-06 03:00 AM (UTC), Binance will consolidate these tokens at a ratio of 10,000 AAVEDOWN (before the reverse split) = 1 AAVEDOWN (after the reverse split), 10,000 DOTDOWN (before the reverse split) = 1 DOTDOWN (after the reverse split) and update the AAVEDOWN, DOTDOWN tokens balances at 2021-04-07 03:00 AM (UTC) after the reverse token split is complete. Due to unit limitations, the new AAVEDOWN, DOTDOWN balances will be updated up to 8 decimal places only.
  • If users are holding ADADOWN, XRPDOWN, or LINKDOWN tokens after 2021-04-07 03:00 AM (UTC), Binance will consolidate these tokens at a ratio of 10,000 ADADOWN (before the reverse split) = 1 ADADOWN (after the reverse split), 10,000 XRPDOWN (before the reverse split) = 1 XRPDOWN (after the reverse split), 10,000 LINKDOWN (before the reverse split) = 1 LINKDOWN(after the reverse split) and update the ADADOWN, XRPDOWN, LINKDOWN tokens balances at 2021-04-08 03:00 AM (UTC) after the reverse token split is complete. Due to unit limitations, the new ADADOWN, XRPDOWN, LINKDOWN balances will be updated up to 8 decimal places only.
  • Users will have a 15-minute window after the reverse token split is complete to subscribe or redeem before trading resumes.
  • The 24-hour time is based on our best estimates and may vary. We will post a further announcement to inform users when trading, subscription, and redemption will resume after the reverse token split is complete.
Note: This announcement has been updated on 2021-04-02 to change the time of trading suspension, the start of reverse token split, and trading reopening of AAVEDOWN, DOTDOWN, ADADOWN, XRPDOWN and LINKDOWN.
Risk Warning: Leveraged Tokens are designed for short term bets on market movement, with a preference toward momentum. Long term holding of Binance Leveraged Tokens (BLVT) is risky, as the token has some built-in decay in the absence of momentum movements in favor of the position. Note that BLVT is NOT a replacement for a margin leveraged product, and does not behave the same way. The information here should not be regarded as financial or investment advice from Binance. All trading strategies are used at your discretion and your own risk. Binance will not be liable to you for any loss that might arise from your use of Leveraged Tokens.
Thanks for your support!
Binance Team
2021-03-25
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Binance reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.
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