Case 1
For BTC Dual Currency Product, if a user chooses the “BTC/USDT” dual currency product. There are two possibilities for the payout at the end of a fixed term.
First, if the Settlement Price < Linked Price
Settlement Forecast = Investment Amount * (100% + Annualized Yield / 365 * Tenor)
Second, if Settlement Price >= Linked Price
Settlement Forecast = (Investment Amount * Linked Price) * (100% + Annualized Yield / 365 * Tenor)
For Example:
User A invests 1 BTC on BTC/USDT pair
Tenor: 2 days or June 17, 2021
Linked Price: 50,000 USD
Annualized Yield offer is 55%
On June 15, 2021, User A Invested 1 BTC with details of the transaction above.
If the BTC settlement price on June 17 is below 50,000 USD, then user A will receive his/her investment and yield in BTC. Therefore, he/she receives 1 * (100% + 55%/ 365 * 2) = 1.003 BTC
If the BTC settlement price on June 17 is greater than or equal to 50,000 USD, then user A will receive his/her investment and yield in USDT. Therefore, he/she receives 1 * 50,000 (100% + 55%/ 365 * 2) = 50,150 USDT
Case 2
For USDT Dual Currency Product, if a user chooses the “USDT/BTC” dual currency product. There are two possibilities for the payout at the end of a fixed term.
First, If the Settlement Price < Linked Price
Settlement Forecast = (Investment Amount/Linked Price) * (100% + Annualized Yield / 365 * Tenor)
Second, if Settlement Price >= Linked Price
Settlement Forecast = Investment Amount * (100% + Annualized Yield / 365 * Tenor)
For Example:
User A invests 100 USDT on USDT/BTC pair
Tenor: 2 days or July 25, 2021
Linked Price: 32,000 USD
Annualized Yield offer is 40%
On July 23, 2021, User A Invested 100 USDT with details of the transaction above.
If the USDT settlement price on July 25 is below 32,000 USD, then user A will receive his/her investment and yield in BTC. Therefore, he/she receives (100/32,000) * (100% + 40%/ 365 * 2) = 0.00313184 BTC
If the USDT settlement price on July 25 is greater than or equal to 32,000 USD, then user A will receive his/her investment and yield in USDT. Therefore, he/she receives 100 * (100% + 40%/ 365 * 2) = 100.21917808 USDT.
In the simplest explanation, User A will be guaranteed to get the yield on the expiry date. The only uncertainty is whether he/she will receive the return in BTC or USDT, which is depending on BTC/USDT or USDT/BTC Linked Price on the expiry date.
Either way, you will get your promised yield! The only difference is the currency.
Definition
- Settlement Price
Settlement Price is the crypto price when the product expires. For example BTC price on BTC/USDT pair. - Settlement Forecast
Settlement Forecast shows the amount you will receive when your investment will settle and the product expires. You will get either BTC or USDT, depending on the Settlement Price.
- Linked Price
Linked Price is a benchmark price of your choice. On Expiry Day, the Settlement Price will be compared against this benchmark price. - Submitted Amount
Submitted Amount is the amount of settlement that you want to invest. - Expiry Date
The Expiry Date is the date when your investment product is settled. - Yield
Yield is the return on investment for the selected Tenor. - Annualized Yield
Annualized Yield is the equivalent annual return you get if you want to continue purchasing the product with the given yield for the whole year.