Explained: why OKX created a diverse structured product system

Have you heard of OKX's Shark Fin? It's a principal-protected product with extremely short terms (3 or 7 days). Under the current market conditions, Shark Fin has been very popular among users with low capital. Our weekly subscription quota for Shark Fin products is 200–300 million USD, and almost every subscription period is sold out in advance.

Shark Fin is a structured product, which is relatively common in traditional finance. Using financial engineering, we can combine fixed financial products and derivatives into new wealth management products.

Crypto traders are looking for ways to improve capital efficiency, and our structured products are a good solution. OKX's structured products include Shark Fin, Dual Investment, and Snowball, each aimed at users with different risk appetites. Our goal is to develop a structured product system that can help users of all kinds find opportunities, regardless of market conditions.

Optimizing user opportunities with mature structured products

At OKX, we've crafted a range of structured products to suit the diverse needs of our users:

• Trading tools: Here, our focus is on assisted trading.

• Basic structured products: These are designed to be low-risk and principal-protected.

• Advanced structured products: These come with medium risk but offer the potential for high returns.

With its global fundamental know-how and user operations specialization, our expert team helps us create products that align with market trends and user demands.

Spotlight on selected products

Dual Investment

Dual Investment is ideal for a market that's moving between stable and fluctuating conditions. Users pick a key crypto pair and stand to gain steady returns in either cryptocurrency based on a target price. If the target price is reached by the expiration date, they get returns in the selected crypto. If not, they earn interest on their stablecoin investments.

Shark Fin

Shark Fin is perfect for those who want to explore both rising and falling markets. Users get a basic yield but can earn more if their market predictions are right. Plus, the principal is protected even when the market is volatile. There's high flexibility in terms of trading amounts, from as low as 10 USDT to as much as 1.5 million USDT. With options for 3-day or 7-day terms, and no subscription fees, Shark Fin meets the needs of a wide range of users.

Snowball

Designed mainly for users with significant capital and a knack for professional trading. It assists in crafting strategies for various market conditions to manage risks and make earnings. The starting position size for Snowball is 50,000 USDT.

To sum up, our structured products have been designed to cater to an extensive range of user requirements.

A brief history: Structured products in crypto

During 2020-2021, the crypto world saw its first structured product, Dual Investment. As the sector evolved, notable platforms such as Matrixport, KuCoin, and Bybit introduced products that echoed this trend. Around the same time, OKX began its journey in structured products. Today, OKX prides itself on having a sophisticated range of structured products that are systematically managed.

Compared to traditional finance (TradFi) traders, the average crypto trader tends to be less seasoned. As the cryptocurrency landscape grows, these novice users dominate the market. Recognizing this shift, OKX prioritizes the needs of its user base. With a keen understanding of user expectations, we're devoted to crafting financial tools that are presented in a user-friendly manner.

How large is the structured product market?

The structured product market, a vital segment in the financial sphere, holds a value in the billions at the time of writing. Its significance could rise as more participants recognize its advantages. Structured products are considered by many to be the backbone of financial innovation, transforming instruments — like options — into more digestible forms. By doing so, they not only make these instruments more accessible but also enhance the overall user experience and optimize capital efficiency.

At OKX, our mission transcends just being a technology company. We envision ourselves as the bridge connecting the vast crypto community worldwide through exceptional product offerings. This ambition has a solid foundation. Our state-of-the-art technical framework, sophisticated automated trading system, and bulletproof risk control mechanism are the core of our operations.

These assets help empower us to be agile, responding promptly to the dynamic demands of our users and bringing innovation through our offerings. But technology alone isn't our strength. Our human capital, consisting of a team equipped with expertise in finance and digital operations, gives us a distinctive edge.

Empowering users with knowledge and transparency

Structured products balance risks and returns, which can lead to inconsistent earnings. We cater to discerning individuals who recognize the financial risks and aim for reasonable asset allocation.

We believe in putting together comprehensive educational material about the crypto space. We're committed to demystifying crypto trades, enhancing users' financial literacy, explaining risks, and sharpening their market understanding. By providing simplified learning materials, we're better able to onboard users at an impressive pace.

Listening to your feedback

We value user feedback and continuously seek ways to enhance our offerings. Some users have expressed concerns about the flexibility of our products and the earnings seen. It's essential to understand that no product can promise limitless earnings. The nature of the products dictates their performance. Our topmost commitment is always the safety and security of our users' assets.

Meanwhile, many have praised the features of OKX structured products. Users find the risk alerts helpful, the earnings structures clear, and the subscription process straightforward. Such positive feedback affirms our efforts in enhancing the user experience and motivates us further. Users gravitate towards our structured products because they offer a seamless experience, have robust risk management, and they trust our brand.

To sustain this trust, OKX consistently shares our proof of reserves. This transparency enables users to monitor our assets and make sure their principal remains secure on the platform. Before any subscription, we provide users with all necessary information about the product's risks and characteristics. We aim to help every user to feel informed and confident in their decisions.

Exploring structured products in the crypto space

In cryptocurrency's ever-evolving landscape, OKX is committed to giving users maxmium potential to grow their portfolios irrespective of market fluctuations. Our paramount concern is safety. Consider us your safety net in the dynamic crypto realm, always looking out for potential risks.

At OKX, cryptocurrency shouldn't resemble a gamble or a shot in the dark. Instead of encouraging blind risk-taking, we advocate for well-informed decisions. While the allure of quick gains might tempt many, our approach leans heavily towards designing products with a foundation in caution and security. Our primary goal is safeguarding your digital assets, emphasizing that a well-informed choice is always the best strategy in the crypto world.

The final word

At the heart of OKX lies a commitment to offering products that are both accessible and secure, ensuring that users across the globe can tap into the cryptocurrency market with ease and confidence. As we continue to innovate, feedback and trust from our community shapes our journey.

This trust validates our technical prowess and the overall user experience we provide, while fueling our unwavering dedication to enhancing our offerings. In essence, for OKX, delivering structured products that are straightforward to grasp yet securely crafted isn't just a priority — it reflects our broader vision for a more inclusive and safe cryptocurrency landscape.