What is dual currency?
- Dual currency is a floating income financial product. The yield of the product is fixed definitively at the time of purchase, whereas the settlement currency is uncertain. When the product is held to maturity, the settlement currency will depend on the comparison between the settlement price at maturity and the linked price.
- Dual currency is a short-term investment product that allows you to obtain potentially higher returns. Here we provide products with a holding period that ranges from a couple of days to several months to meet the varying needs of different users for liquidity and risk.
- We provide Dual currency settled in BTC. Users make purchases in BTC and will receive payment either in BTC or USDT, depending on the comparison between the settlement price at maturity in BTC and the linked price.
- The settlement price is the average of the Settlement Index from15: 30 to 16: 00(UTC+8) on Maturity Date.
For example, current product parameters:
- Linked price: 12,000 USDT
- Purchase date: March 27, 2020
- Maturity date: at 16:00 on March 28, 2020 (UTC+8)
- Yield: 2%
- Annualized rate of return: 730%
- Investment currency: BTC
At 7:00 on March 27, 2020, Alice purchased one BTC of the Dual currency Product with a yield of 2% and the linked price pegged at 12,000 USDT. The received payment will be settled at 16:00 on the maturity date of March 28, 2020.
The product matures at 16:00 on March 28, 2020, and will be subject to the settlement price as follows:
- If the BTC/USDT settlement price is less than 12,000 USDT, Alice will obtain a 2% BTC-denominated gain. In other words, the received payment will be 1*(1+2%) BTC or 1.02 BTC.
- If the BTC/USDT settlement price is higher than or equal to 12,000 USDT, Alice will obtain a 2% USDT-denominated gain. In other words, the received payment will be 1*12,000*(1+2%) USDT or 12,240 USDT.