The popularity and trading volume of HomiEx ETFs have increased in the past six months. HomiEx ETFs provide traders with options on trading their favourite cryptocurrencies. We've received your feedback and suggestions for improvement pertaining to the ETFs. We've consolidated the feedback as follows:
About the ETF settlement mechanism
1) The Settlement and the Rebalance for ETF are too often and the functions are not so user-friendly. A suggestion was to merge the shares to maintain position;
2) The trading fee for ETF should be different from the trading fee for spot trading, lowering the fee is highly recommended;
3) Better liquidity and depth for ETF is needed.
Based on the above feedback and suggestions, HomiEx will conduct the following adjustments to our ETFs:
i) Improve the Settlement and Rebalance mechanism, abandon the USDT auto conversion and adopt the Shares Merger instead;
In response to the possibility of the risk of ETF’s net value dropping to zero, we have designed a Shares Merger and Rebalance mechanism for our ETFs. The Shares Merger and Rebalance mechanism will be activated when the net value and price of the ETF position is lower than 5% of the original net value. All ETF positions held by traders at the time of shares merger will be changed to 1/N of the original share. The net value of the position will be revised to N times the original net value price. Currently, the shares merger parameter N is tentatively set at 20. HomiEx will announce the specific shares parameter in its announcement.
ii) Lower the trading fee for ETF to 0.1%, which is the same to with spot trading fee, and the preferential fee policy for VIP users is also fit for ETF tradings;
iii) Lower the position of management fee for ETF from 0.03% to 0.01%;
iv) The original net value of all ETFs will begin at 1 USDT. HomiEx will hire professional market-makers to provide better liquidity and depth;
This policy will take effect at 18:00, 1 February 2021 (UTC+8).
Risk Warning: Investing in cryptocurrency is akin to be a venture capital investor. The cryptocurrency market is available worldwide 24 x 7 for trading with no market close or open times. Please do your own risk assessment when deciding how to invest in cryptocurrency and blockchain technology. HomiEx attempts to screen all tokens before they come to market, however, even with the best due diligence, there are still risks when investing. HomiEx is not liable for investment gains or losses.