The above chart is an example simulation of 3 traders buying and selling into a 1.25x leveraged ETH fund. Each investor invests $1000usd. Investor 1's entry is $100/ETH. When he enters, the fund nav increases by $1000 and gets 12.5 ETH of exposure.

Investor 2 enters at $34/ETH. $100 to $34 is a 66% loss. At 1.25x leverage, this is a 82.5% loss. At $34, the NAV currently is $175 before Investor 2's $1000usd is invested and $1175 after. The fund now has 49.26 ETH of exposure.

Investor 3 enters at $25/ETH. $100 to $25 is a 75% loss. At 1.25x leverage, this is a 93.75% loss. Investor 1's $1000usd investment is now worth $62.5. Investor 2 entered at $34/ETH. $34 to $25 is a 26.47% loss. At 1.25 leverage, this is a 33.1% loss. Investor 2's $1000usd investment is now worth $669.1176. $62.5 + $669.1176 + $1000 = $1731.617 which is the NAV at $25/ETH.

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