Gate.io Announcement on  Compensation for LINK5L Buyer Affected By Abnormal  Price Fluctuations

Around  09:35 UTC January 10, 2025, LINK5L/USDT market showed drastic price fluctuations. Gate.io took immediate actions to investigate the causes behind the abnormal price changes and found that the net asset value of the LINK5L was already 0.01 USDT before the abnormal price changes, but some traders still placed buy orders at around 0.02 USDT, a price much higher than the net asset value, finally leading to losses on January 10 at 09:38  UTC with the abnormal price fluctuations.

Unlike a standard crypto token, the leveraged token is designed to be traded around its net asset value, the fair value of the token. Despite the real-time net asset value displaying in the market, some users unfortunately did not notice it and placed their purchase orders at a price deviating a lot from the net asset value during the market abnormal fluctuations. When the price was back to normal, buyers who bought high suffered a loss.

Gate.io, a leading exchange since 2013, we prioritise security and user experience as always. We fully understand how our users feel in such a situation. We have decided to make compensation for eligible buyers who suffered losses to help them getting through tough situation. Users who are eligible for the compensation can submit a ticket and receive a 100% compensation.

Who are eligible  for claiming the compensation:Gate.io users who have bought LINK5L in LINK5L/USDT market during 09:38 UTC on  January 09 - 09:38 UTC on  January 10, 2025.

Compensation Calculation:Compensation value =(Buy Price-NetAsset Value at the Purchase Time) X Buy Quantity

How to apply for the compensation:Submit a ticket  and make a short description of your account and your request and that is all

Application deadline:January 17: 04:00 UTC

The deadline of the application is January 17, 2025: 04:00 UTC. Please do submit your request before this time. If you miss  the deadline, your request won’t be processed.

Gate.io TeamJanuary 10, 2025