Dual Currency product Introduction：
Dual Currency Product is a non-principal protected investment product with floating return. The yield of the product is secured at the time of purchase, while the currency in which the product will be settled changes depending on how the Settlement Price compares with the Linked Price.
Dual currency linked price is a fixed price that for comparing settlement price after the redemption of the product;Settlement price is the the average of the BTC price Index in the last 30 minutes before 16:00 (UTC+8) on redemption Date.
Dual Currency Settlement Rules：
If the Settlement Price is below the Linked Price, the product will be settled in the Investment Currency, i.e. BTC
If the Settlement Price is above the Linked Price, the product will be settled in the form of USDT
Dual Currency Example：
Here we have a BTC/USD product with the parameters as follows
|
Linked Price
|
10,000
|
|
30 Term
|
3
|
|
Yield
|
0.4%
|
|
Annualized Yield
|
49%
|
|
Investment Currency
|
BTC
|
On 2020/06/01, User A bought 1 BTC notional of the above product.
On 2020/07/01
If the Settlement Price is below USD 10,000, Users A receives his/her original investment and the 0.4% yield in BTC. Therefore, she receives 1*(1+0.4%) =1.004 BTC.
If the Settlement Price is at or above USD 10,000, User A receives his/her original investment and the 0.4% yield in USD. Therefore, she receives 1*10000*(1+0.4%) USDT = 10040 USDT
Simply put, User A will be guaranteed a 0.4% yield on the expiry date. The only uncertainty is whether she will receive the return in BTC or USDT, depending on where BTC/USD stands on the redemption date.
FAQ：
Q：What are the requirements to purchase Dual Currency Product?
A：Intermediate verification or above is required. Once you have assets no less than the minimum purchase quantity in your account, you are free to invest.
Q：Under what circumstances will I receive settlement in BTC
A：On the redemption Date, if the Settlement Price is below the Linked Price, the product will be settled in the Investment Currency, i.e. BTC
Q：Under what circumstances will I receive settlement in USDC, and what is USDT?
A：On the redemption Date, if the Settlement Price is above the Linked Price, the product will be settled in the form of USDT
Q：Can I revoke the investment before the redemption date?
A：It's irrevocable after the purchase is successful. You will hold the product till the redemption Date.
Q：Can I redeem the investment early before redemption date?
A：No early redemption is allowed. It will be settled by 16:30 UTC+8 on the redemption Date.
Q：What are the uncertainty and potential risks
A：The only uncertainty is the currency that the product will be settled in, which is determined by how the Settlement Price compares with the Linked Price. The risk of this product mainly comes from the volatility of the market: the higher the volatility, the harder it is to predict the Settlement Price and where it might be compared with the Linked Price on the redemption Date.
Q：Why are there different Linked Prices for different products
A：We provide products with different Linked Prices based on the investor risk tolerance. Generally, products with higher Linked Prices are more conservative, in that they normally have lower annualized yield but also carry lower risk. On the other hand, products with lower Linked Prices normally provide higher yields, but also carry higher risk at the same time.
Q：Are the products with higher yields always the better choices?
A：Yield and Linked Price are two important parameters of Dual Currency Product and would change hand in hand. Highest yield does not always indicate the best option- risks and returns go hand in hand as well, please select product your risk tolerance.
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