Tradr ETFs warns that its 2x Short AXTI Daily ETF (AXTQ) has fallen 33.66% since its launch on August 18 through September 9, while the underlying AXT Inc. (Nasdaq: AXTI) only declined 16.28% over the same period. This discrepancy reveals that the daily rebalancing mechanism penalizes multi-day holders far more than the expected inverse return. Tradr ETFs notes that AXTQ is designed to achieve -200% of AXTI's daily performance, but multi-day returns are a function of the underlying path, not a simple multiple. AXTI's stock price has surged over 2000% in one year, and Tradr ETFs warns that AXTQ could lose all its capital if AXTI experiences an unfavorable single-day fluctuation of 50%.