If you are holding 10 BTC and aim to earn more BTC with dual-earning product, by believing that the BTC price will be higher in a month’s time, which means the settlement price ≧ strike price, the investment will be settled in BTC. However, upon maturity, if BTC final price is lower than the strike price, your investment will be converted to ETH. Eventually, you will receive 139.2367 ETH, which is the sum of your principal of 10 BTC converted into ETH by the strike price and the ETH you yielded.
The calculation is as follows: Principal*(1+Actual Yield) / Strike Price.
Calculation based on your portfolio : 10*(1+0.00877) / 0.07245 =139.2367 ETH
A few days later, you are still confident with dual-earning, in the view to earn more BTC by holding 10 BTC, believing a month later the settlement price will go higher than the strike price. Upon maturity, your prediction comes true, the final price goes above the strike price, therefore BTC remains as the settlement currency. You are entitled to receive 10.0877 BTC, the total up of your principal and the BTC you yielded.
The calculation is as follows: Principal*(1+Actual Yield)
The calculation based on your portfolio: 10*(1+0.00877)=10.0877 BTC
In a nutshell, there are two possible outcomes of settlement.
The examples shown above demonstrated that the settlement currency is not guaranteed in this product. The redemption on maturity is determined by the settlement price, either it goes below or above the strike price. Therefore, if you are looking for a product with high return potential and willing to take the risk to receive a different cryptocurrency as the settlement, this product is a good option for you. We truly wish the above demonstration has presented you with a clearer understanding of Dual - earning potential return.
A friendly reminder: This is a yield enhancement product, and your investment principal is not guaranteed, please evaluate the risk carefully before investing.
The product details:
Actual Yield： 0.877%
Initial Price：0.0805, 9 pm HKT(UTC+8)
Strike Price（Initial Price*90%)：0.07245
APY：10%
*Prices are taken from the spot market on Binance Exchange