Product Description
- The product is yield enhancement product
- The product can be early redeemed
- The principal is not protected
Product Features
- Attractive Coupon. The product can gain high potential returns.
- Callable Feature. Call back is triggered if the underlying crypto currency close at or above the callable prices on a periodical observation date. Investors benefit from callable feature which can potentially shorten the holding period to a very short period of time.
- Superior Returns in Range-trading Markets. Appropriate for investors who are either moderately bullish or who hold a “range-trading” view about the underlying currency.
- Buying crypto currency at discounted price. Potentially the product can be converted into target crypto currency at a discount to the current price.
Payoff Features:
- If the price of the underlying is at or above Knock-out price on a Knock-out Observation Date, investor will get 100% principal back immediately and the Knock-out Coupon.
- If there’s no Knock-out and the price of the underlying has never fallen to or below the pre-determined barrier price at any time during the investment term, investor will get 100% principal back and the Bonus Coupon at maturity.
- If there’s no Knock-out and no Knock-in, and the Final Price is below the Conversion Price, investor will get the initial investment converted into Target Currency at the Conversion Price.
Payoff Diagram
Scenario Analysis:
Sample Terms
|
Tenor |
6 month with Bi-weekly Callable Observation |
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|
Investment Currency |
USDT |
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|
Underlying Crypto Currency |
BTC/USDT |
|
|
Callable Price |
Initial Price*105% |
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|
Knock-in Price/Conversion Price |
Initial Price*80% |
|
|
Knock Coupon/Bonus Coupon |
30% p.a. |
|
|
AutoCallable Event (Bi-weekly observation) |
If on any AutoCallable Observation Date, the price of the Underlying is at or above the Callable Price |
|
|
Knock-in Event (Daily Observation) |
If on any Knock-in Observation Date, the price of the Underlying is below the Knock-in Price |
|
|
Payout Terms |
AutoCallable (Early Redemption) |
100% + Knock Out Coupon in USDT |
|
No Autocallable and No Knock-in |
100% + Bonus Coupon in USDT |
|
|
No Autocallable but Knock-in and above Conversion Price |
100% in USDT |
|
|
No Autocallable but Knock-in and below Conversion Price |
Product will be converted into BTC at Conversion Price |
|
Scenario 1:
On an AutoCallable Observation Date, the price of the Underlying is at or above the Callable Price.
- On 3rd Observation Date，Underlying Price (107%) is above Callable Price(105%). On this observation date，product will be early redeemed.
- Investor receives 100% Principal back and 30% p.a. coupon in USDT.
Scenario 2:
The underlying price is below Callable Price on all the AutoCallable Observation Dates, but is at or above the Callable Price on the Final Observation Date.
- During the tenor, there’s no early redemption.
- On the Final Observation Date，Underlying Price (109%) is above Callable Price(105%). At maturity, investor receives 100% Principal back and 30% p.a. coupon in USDT
Scenario 3:
The underlying price is below Callable Price on all the AutoCallable Observation Dates(including final) but is above Knock-in Price all the time.
- During the tenor, there’s no early redemption and there’s no knock-in.
- At maturity, the underlying performance is 88% but given there’s no knock-in, investor receives 100% Principal back and 30% p.a. coupon in USDT
Scenario 4:
There is no early redemption but Knock-in has occurred. The Final Price is at or above the Conversion Price.
- During the tenor, there’s no early redemption but the underlying price has fallen below Knock-in.
- At maturity, the underlying performance is 90% and is above the Conversion Price, investor receives 100% Principal back in USDT
Scenario 5:
There is no early redemption but Knock-in has occurred. The Final Price is below the Conversion Price.
- During the tenor, there’s no early redemption but the underlying price has fallen below Knock-in.
- At maturity, the underlying performance is 75% and is below the Conversion Price, investor receives the Principal back in BTC with the Conversion Rate at the Conversion Price. Effectively investor buys the BTC at the Conversion Price which has a 20% discount to the current price.