"Explanation of the 'Fair Compensation' for Silver LOF's 31% Overnight Drop"

Silver LOF suddenly announced: We're no longer playing the slow decline game with domestic futures; we're directly aligning with international silver prices! So the net value plummeted—by 31%.
Investors were collectively confused: Where's the 20% protection for the limit-down drop?
But actually, this was a fair correction: International silver prices genuinely dropped 31%, while domestic futures, limited by the 20% limit-down rule, only reflected a 20% decline. The remaining 11% is owed to the market. If those who redeemed yesterday had run at -20%... that 11% gap would be left for the remaining investors to fill.
Friendly reminder: Investing in international commodities (gold, silver, oil, etc.) comes with a time zone mismatch—global markets trade 24/7, and after A-share market closes, they might still be crashing or soaring. During extreme volatility, the net value of your domestic funds might already be collapsing while you're still sleeping.
So, when playing with international funds, you need to keep a world clock⏰ in mind. If the net value suddenly drops due to time zone differences... it might not be the fund manager's incompetence; it could be the other side of the planet causing the chaos$XAG