When the product settles, users will buy or sell crypto and earn interest in the settlement crypto if the target price is crossed. Otherwise, they will receive their subscription amount back along with interest in the same crypto.
| Settlement scenario | Settlement amount | Settlement currency |
|---|---|---|
| Expiration price < Target price | Subscription amount × (1 + Term rate) | Base crypto |
| Expiration price ≥ Target price | Subscription amount × Target price × (1 + Term rate) | Quote crypto |
Example: You choose a Sell BTC high strategy with a subscription amount of 10 BTC, target price of $58,000, and a term rate of 0.2%.
If the expiration price of BTC is < 58,000, you'll receive:
10 × (1 + 0.20%) = 10.02 BTC
If the expiration price of BTC is ≥ $58,000, you'll receive:
10 × 58,000 × (1 + 0.20%) = 581,160 USDT
| Settlement scenario | Settlement amount | Settlement currency |
|---|---|---|
| Expiration price > Target price | Subscription amount × (1 + Term rate) | Quote crypto |
| Expiration price ≤ Target price | Subscription amount / Target price × (1 + Term rate) | Base crypto |
Example: You choose a Buy BTC low strategy with a subscription amount of 10,000 USDT, target price of $50,000, and a term rate of 1.24%.
If the expiration price of BTC is > 50,000, you'll receive:
10,000 × (1 + 1.24%) = 10,124 USDT
If the expiration price of BTC is ≤ 50,000, you'll receive:
10,000 / 50,000 × (1 + 1.24%) = 0.20248 BTC
Base crypto: The underlying crypto that you’re buying or selling.
Quote crypto: The currency your base crypto is denominated in.
Target price: The benchmark price that’s compared to the settlement price to determine the settlement scenario.
Expiration price: The average indexed price of the base crypto between 07:00 UTC and 08:00 UTC on the expiration date.
Expiration date: The date your order will be settled. The expiration time is set at 08:00 UTC on the expiration date.
Annual percentage rate (APR): An approximation of the potential interest your product will earn over a one-year period.
Term rate: The interest a product will earn over its term. It’s calculated with the following formula:
Term rate = APR x Term/365
Term: The length of your order, which is used to calculate your earnings. After confirming your order, your term will start from the next hour.
1. Can I redeem before the expiration date?
Yes. Early redemption is available for BTC/USDT and ETH/USDT products, provided the term is longer than 2 days.
2. When can I redeem my order?
The order can be redeemed 24 hours after the interest started to accrue, and no later than 24 hours before the expiration time. Take for example an order with the following details:
Interest accrual time: 03/01/2022, 08:00 UTC
Expiration time: 03/11/2022, 08:00 UTC
Then, the order can be redeemed at any time between:
Start time: 03/02/2022, 08:00 UTC
End time: 03/10/2022 08:00 UTC
3. When will my returns be credited to my Funding account?
If your redemption is successful, your crypto will be credited to your Funding account the following day at 10:00 UTC.
4. Does early redemption incur a loss?
If you choose to redeem early, you'll be able to review the exact amount of crypto you'll receive. Redeeming early may lead to losses, as the amount could be less than the initial subscription amount.
Choosing early redemption also means you'll only receive the crypto that you used to invest. For example, if you invested BTC, you'll only be able to redeem BTC and won't have the choice of redeeming in USDT.
Although the price of wrapped cryptos is usually pegged to the price of its staked crypto on a 1:1 basis, they can sometimes stray from each other. In these cases, we use the price of the staked crypto, resulting in the difference you see.