Dual Currency Product
Dual Currency Product is a non-principal protected investment product with floating return. The yield of the product is secured at the time of purchase, while the currency in which the product will be settled changes depending on how the Settlement Price compares with the Linked Price.
A short-term investment product, Dual Currency could potentially provide very high return. We have also designed it with a selection of tenors, catering to your varying risk appetite.
Dual Currency-Altcoin-USDⓈ
Dual Currency-Altcoin-USDⓈ : The investment currency is USDC or USDT, and the settlement currency can be Altcoin or the stablecoin you invested in (USDC or USDT), depending on how the Settlement Price compares with the Linked Price: if the Settlement Price is lower than the Linked Price, you will receive your return in Altcoin; instead, if the Settlement Price is higher than the Linked Price, you will receive the return in the stablecoin you invested in (USDC or USDT).
Definitions
- Payment Currency
Payment Currency with which you purchase an investment product. For Dual Currency-Altcoin-USDⓈ products, it could be either USDC or USDT.
- Investment Currency
Investment Currency is the currency in which the investment will be made into the purchased product. For Dual Currency-Altcoin-USDⓈ products, it would be USDC or USDT.
- Settlement Currency
Settlement Currency is the currency that you will receive when the product expires. For Dual Currency-Altcoin-USDⓈ products, it could be the stablecoin you invested in (USDC or USDT) or Altcoin, depending on how the Settlement Price compares with the Linked Price.
- Expiry Date
Expiry Date is the date when your investment products are settled. Your return from this product will be automatically credited into your account on this day.
- Yield
Yield is the income returned on an investment. It is expressed in percentage and is used to calculate the Settlement Amount.
- Annualized Yield
Annualized Yield is the equivalent annual return you would get if you continue purchasing this product with the given yield for a whole year. Its calculation formula is: Annualized Yield = Yield / (Expiry Date - Today) * 365
- Linked Price
Linked Price is a benchmark price. On the Expiry Day, the Settlement Price will be compared against this benchmark price. If the Settlement Price is above the Linked Price, the product will be settled in the Investment Currency (i.e. USDC in this case); otherwise, it will be settled in Altcoin.
- Settlement Price
Settlement Price is the average of the Settlement Index in the last 30 minutes before 16:00 (UTC+8) on Expiry Date.
- Settlement Index
Settlement Index is derived from seven leading Altcoin-USD exchanges, including Bittrex, Bitstamp, Coinbase Pro, Gemini, Kraken, Itbit and LMAX Digital. It is the average of bid-ask prices from these exchanges after removing the highest and lowest values. - Boost
The investment return consists of two parts, as in the example: 15.31% + (2%).The second part, +2%, is the boosted yield, which is the maximum additional return that the investment product provides the User and is not guaranteed. Matrixport has the sole absolute discretion to vary the Boost component.
Example
Let's take a look at how the Dual Currency-Altcoin-USDⓈ Product works:
Here we have a product with the parameters as follows:
- Linked Price: 8,000
- Expiry Date: 25-Jan-2020
- Yield: 5%
- Investment Currency: USDC
- On 9-Jan-2020, Alice bought 10,000 USDC notional of the above product.
On 25-Jan-2020
- If Altcoin rallies between January 9 and January 25, and the Settlement Price is above 8,000 USD, Alice receives her original investment + 5% yield in USDC. Therefore, she receives 10,000 + 5%*10,000 = 10,500 USDC.
- If Altcoin weakens against USD between January 9 and January 25 and the Settlement Price is at or below 8,000 USD, Alice receives her original investment and 5% return in Altcoin. Therefore, she gets 10,000/8,000 + 10,000/8,000*5% = 1.3125 Altcoin.
Simply put, it is guaranteed that Alice will get 5% yield on the expiry date. The only uncertainty is whether she will receive it in Altcoin or USDC, depending on where Altcoin/USD stands on the expiry date.
Frequently Asked Questions
- What is the prerequisite to purchase Dual Currency-Altcoin-USDⓈ?
There is no prerequisite on your Identity Verification level to purchase this product. Once you have assets no less than the minimum purchase quantity in your account, you are free to invest. However, we do suggest that you review the product specifications closely. You will also be asked to take a quick quiz before making the first investment to ensure that you have fully understood the product.
- What is the minimum and maximum investment amount?
The minimum investment amount is generally 1000 USDC/USDT, subject to change as shown on the actual page. 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 Expiry Date?
- No early redemption is allowed. It will be settled by 16:30 UTC+8 on the Expiry Date.
- When can I get my settlement and how?
You will get your settlement amount by 16:30 UTC+8 on the Expiry Date. It will be credited into your wallet automatically and there is no need for manual redemption.