Intro of Flexi Saving Product
(i) Product features:
1. Flexible deposit and withdrawal：
You can deposit and withdraw at any time. Interest will start accruing upon successful deposit.
2. Hourly compounding：
Interest is compounded on an hourly-basis.
3. Open and transparent：
We publish real-time data such as the total amount of digital assets deposited by all Users into the relevant Flexi Saving Product, the utilization rate, the depositor APY, the borrower APY and the current flow balance. In addition to real-time data, you can also view historical data so that you can make appropriate investment decisions based on your investment needs.
4. APY proportional to Utilization Rate:
The interest rate offered by Matrixport may increase when Matrixport’s demand for the relevant digital asset increases. Conversely, the interest rate offered may decrease when Matrixport’s demand for the relevant digital asset decreases. This increase / decrease in demand is measured by the Utilization Rate.
The Utilization Rate is the ratio of (a) the aggregate amount of digital assets from the relevant Flexi Saving Product that has been lent by Matrixport to borrowers, to (b) the total amount of digital assets deposited by all Users into the relevant Flexi Saving Product.
Utilization Rate = [1 – (flow balance)] / (total deposits of all Users)
The higher the Utilization Rate, the higher the APY. When the Utilization Rate exceeds the inflexion point (see the “Interest Rate” chart in the product description on the App), you will enjoy a higher deposit interest rate.
Interest will be compounded on an hourly-basis at the same time that the Utilization Rate is updated (the longest interest calculation cycle is one hour).
5. Auto Top-up
After Auto Top-up is enabled, the balance digital assets will be automatically transferred from your wallet to a corresponding Flexi Saving Product. This way, you can enjoy the benefits of your idle digital assets generating interest in an efficient way.
(ii) What are the advantages of Flexi Saving compared to Defi products?
Minimal smart contract risk
Unlike Defi products where losses may be suffered by the User due to smart contract vulnerabilities, the Flexi Saving Product provides returns that are comparable to Defi deposits with minimal smart contract risk.
Minimal transaction fees
Unlike Defi products where the deposit and withdrawal of Defi products require on-chain transactions which may incur high transaction fees, there are no fees charged for the Flexi Saving Product.
(iii) Withdrawals:
Flow balance is the total available deposits in the relevant Flexi Saving Product in the previous interest calculation period.
Deposits withdrawn by the User from the Flexi Saving Product will be returned in real time if the flow balance is more than the amount being withdrawn by the User.
If the amount being withdrawn by the User is more than the current flow balance, the withdrawal will be settled as soon as the digital asset becomes available (e.g. new funds are deposited or the borrower repays). In the meantime, your deposit continues to accrue interest and you can also cancel the withdrawal request.
(iv) How will your deposits be utilized by Matrixport?
The digital assets that you deposit into the Flexi Saving Product will be used for Matrixport’s businesses including advancing collateralized loans, margin loans and other loans.
(v) Does Matrixport charge any fees?
Matrixport does not currently charge any fees for the Flexi Saving Product.
(vi) What are the risks?
The Flexi Saving Products should not be regarded as substitutes for bank savings or deposits. The Flexi Saving Products are not insured in any way by deposit insurance.
Digital asset transactions contain extremely high risks, and digital assets are traded uninterrupted throughout the day, the User should determine the suitability for depositing digital assets into the Flexi Saving Product(s) based on their own financial situation and risk preference
Extreme market conditions such as volatile price movements that lead to large withdrawals by Users of certain digital assets. This may affect the normal use of the Matrixport platform and can affect the ability of the User to withdraw their digital assets in “real-time”.