Bull Punter and Bear Punter are non-principal protected investment products that could potentially yield uncapped returns at a small price. As indicated by their names, Bull Punter and Bear Punter are directional products and should be your choice when you believe the BTC price will go up (bull) or down (bear) to a certain point. If the market turns out to be consistent with your judgment, you will be able to realize unlimited returns with the small premium you pay. If the market does not go as expected, all you will lose is the premium.
If you are gloomy about the BTC price in the coming days, Bear Punter should be your choice. If by expiry, the BTC price has gone down and ends lower than the Linked Price, you will receive return in BTC based on Settlement Rules. If the BTC price hasn’t gone down enough, there won’t be any return. That being said, with Bear Punter, your maximum loss would only be the premiums you pay, while your potential return could be unlimited. Buying a Bear Punter is similar to shorting BTC in that you make profit when the price goes down. What makes it different is that you can enjoy the leverage effect without having to worry about maintaining your margin, a trouble inevitable when you invest in future contracts.
If Settlement Price < Linked Price: Settlement Amount = Shares*(Linked Price/Settlement Price-1)
If Settlement Price ≧ Linked Price: No settlement
Expiry Date is the date when your investment products are settled. Your return from this product will also be automatically credited into your account on this day.
Linked Price is a benchmark price. Upon the expiry of the product, the Settlement Price will be compared against this benchmark price to determine whether you will receive settlement.
Bear Punter is offered in shares and a premium is charged on a per-share basis. You could decide the number of shares you’d like to buy. The total premiums you pay and the settlement you receive will be based on the number of shares you end up purchasing. The premium is non-refundable.
Settlement Price is the average of the Settlement Index over the last 30 minutes before 16:00 (UTC+8) on the Expiry Date.
Settlement Index is derived from 7 leading BTC-USD exchanges, including Bitstamp, Bittrex, Coinbase Pro, Gemini, Itbit, Kraken and LMAX Digital.
Let's take a look at how a Bear Punter product works:
Here we have a Bear Punter product with the parameters as follows:
- Linked Price：10,000
- Expiry Date：27-Mar-2020
- Premium per Share：0.01BTC
On 28-Feb-2020, Alice bought 1 share of the above product.
- If BTC Settlement Price drops lower than the Linked Price and ends up at 8,000 USD, Alice will receive 1 share*(10,000/8,000-1) BTC = 0.25 BTC.
- If the BTC Settlement Price ends up at 12,000 USD, higher than the Linked Price, Alice will get no settlement.
What is the prerequisite to purchase Bull Punter Product?
There is no prerequisite on your Identity Verification level to buy this product. However, we do suggest that you carefully review the product specifications. You will also be asked to take a quick quiz before making the first investment to ensure that you have fully understood the rules.
What is the minimum and maximum purchase limit?
The minimum purchase limit is 0.1 share. There is no maximum limit for investors as long as there is quota left for the product.
Can I revoke the investment before the Expiry Date?
It is irrevocable after the purchase is successful. You will hold the product till the Expiry Date.
Can I redeem the investment early before the Expiry Date?
No early redemption is allowed. It will be settled on the Expiry Date by 16:30 UTC+8.
When can I get my settlement and how?
You will get the settlement upon expiry as long as the Settlement Price is higher than Linked Price. In that case, the settlement amount will be credited into your wallet by 16:30 UTC+8 on the Expiry Date automatically, and there is no need for manual redemption.