This product is a yield enhancement product. The redemption at the end of the term is determined on the basis of the Final Price of the Underlying being above, at or below the Strike Price of the Underlying. The principal is not protected.
1. Multiple tenors and different strike prices could be chosen.
2. Potential high returns from the investment.
3. Get cryptocurrency at a discounted price once converted.
4. Provide a variety of cryptocurrency products with different periods.
Definitions of Terms
Investment Currency: Investment Currency is the currency that you paid for the product.
Settlement Currency: Settlement Currency is the currency that you will receive when the product expires. For ETH/BTC, the Settlement Price is a price expressed as the amount of BTC that can be purchased with one unit of ETH that is based on the transaction price involving such Underlying from one or more crypto exchanges, as determined at the Determination Time on the relevant date in good faith and in a commercially reasonable manner by the Calculation Agent.
Deposit Deadline: The yield to maturity is calculated based on the number of purchases and the annualized yield.
APY: APY represents the standard of return for an investment product and is used to calculate the amount to be paid back at maturity. for a whole year. I
Linked Price: Linked Price is a benchmark price. On Expiry Day, the Settlement Price will be compared against this benchmark price. If the Settlement Price is below the Linked Price, the product will be settled in Investment Currency (i.e. BTC in this case); otherwise, it will be settled in USDC.
On Maturity Date, the Product Investor is entitled to receive an amount, as calculated by the Calculation Agent, as below:
- If the Final Price is at or above Strike Price, each Product will be redeemed in BTC, with an amount equals
Denomination * (1 + Yield)
- Otherwise, each Product will be converted into ETH, with an amount equals
(Denomination/Strike Price) * (1 + Yield)
Possible Payoffs of the product:
At maturity, if the underlying cryptocurrency Final Price closes at or above its Strike Price, the product will be redeemed in its investment currency with high return; if the underlying cryptocurrency Final Price closes below its Strike Price, the product will be settled in the target currency at Strike Price with the return, which is a discount to the Initial Price.
On the Maturity Date, the Final Price of the Underlying Crypto Currency (102%) is higher than its Strike Price (90%):
The Investor will receive BTC and BTC return calculated as below
10*(1+0.877%) = 10.0877 BTC
On the Maturity Date, the Final Price of the Underlying Crypto Currency (88%) is lower than its Strike Price (90%):
The Investor will receive ETH and ETH return calculated as below
Effectively, the Investor converts the BTC into ETH at the Strike Price(90%). Compared to the Initial Price, the Investor gets a 10% discount and receives more ETH.
Frequently Asked Questions:
1. What is the underlying meaning?
ETH/BTC, i.e. the amount of BTC expressed as per one unit of ETH
2. When can I get the confirmed underlying fixing price?
The underlying fixing price will be determined at 21:00(SGT, UTC + 8) of the Fund-Raising End-day, which will be displayed on the Metalpha App at 22:00(SGT, UTC + 8)
3. When can I get the confirmed underlying final price?
The final price of ETH/BTC will be determined at 21:00(SGT, UTC + 8) of the maturity date which will be displayed on the Metalpha App at 22:00(SGT, UTC + 8).
4. Can I redeem the investment before the expiry date?
Any kind of early redemption is not allowed before the expiry date.