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 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 for 1 BTC with details of 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 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 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 for 100 USDT with details of 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 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 a 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 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
Expiry Date is the date when your investment product is settled. - Yield
Yield is the return on an 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.