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What does the inferior fund of 38 million yuan (1:2 leverage) mean?
To issue a product, 38 million yuan is used as inferior fund, 76 million yuan as priority fund, and the leverage is 1:2.

If the investment loses money, the priority fund will not lose money, and all the losses will be borne by the inferior fund.

If the investment is profitable, priority funds generally only get a fixed annualized income or a low proportion of the income share, and all other income is returned to the inferior funds.

In fact, it is equivalent to amplifying risks and benefits at the same time and paying the cost of obtaining priority funds.