The socalled rebalancing refers to adjusting the proportion of various assets in the investment portfolio. For XT ETF products, rebalancing means that the fund manager adjusts the position of the cryptocurrency perpetual contracts of the ETF. This is due to the fact that the leverage level of the ETF will change when the price of the underlying asset changes, and it is necessary to regularly rebalance the position of the underlying asset contract in order to maintain a fixed target leverage multiple.
Specific rebalancing is performed by tracking and maintaining the fund's leverage ratio on a daily basis based on daily market fluctuations, i.e., liquidating the fund's assets at a fixed time each day and recalculating the amount of leverage that needs to be built up based on the adjusted NAV of the fund in order to ensure that the target multiple is tracked to the maximum extent possible.
For example, suppose the current BTC price is $100 and the user holds an ETF with a net value of 100 USDT. for a triple leveraged BTC leveraged token, the corresponding underlying asset BTC contract position value is 300 USDT. suppose the investor buys 1 BTC3L with 100 USDT. if the BTC price rises by 5% on the same day, then the net value of the BTC3L rises by 15%. At this point, the BTC price is $105, and the investor holds BTC3L with a net value of $115, corresponding to a contract value of $315. After this round of price movement, the actual leverage multiple of BTC3L has changed, and currently its leverage multiple becomes: 315/115 = 2.74, and is no longer the expected target of three times leverage. At this point, the corresponding contract position of BTC3L would need to be increased by another $30, increasing the position to $345, in order to maintain the target of 345/115 = 3x leverage. Similarly, if the price of the underlying asset falls, the corresponding leveraged tokens need to be reduced to bring the leverage multiplier back to 3x.
The XT ETF rebalancing mechanism is divided into daily fixed rebalancing and temporary rebalancing.

Fixed Rebalancing:
XT will conduct daily rebalancing at 10:30:00 (UTC+8) to adjust the contract positions of current ETFs. 
Temporary Rebalancing:
If the market fluctuates drastically and the price of the underlying asset fluctuates more than a given threshold compared to the previous rebalancing point, the platform will conduct temporary rebalancing to control the risk. Temporary rebalancing is only for products affected by market fluctuations and losses, while other unaffected products will not be adjusted.