What is Metalpha Dual-Earning Investment?
The Metalpha Dual-Earning is a non-principal protected investment product that provides a fixed annualized interest higher than the market average. The price of cryptocurrencies would fluctuate violently for reasons, and we provide a financial instrument to earn more digital assets for our investors in such a high-volatility market. Of course, in good market conditions, investors can not only gain interest coins but also enjoy the high returns of coins themselves.
How does it work?🤔
For BTC-ETH Dual-Earning Investment, the principal invested by investors would be BTC and the settlement currency would be BTC or ETH, depending on the Final Price of ETH/BTC. The Strike Price of ETH/BTC will be determined at the beginning of investing manner, which is a percentage of the Initial Price of ETH/BTC. Assuming the Strike Price is 90% of the initial Price:
- If the Final Price is higher than the Strike Price on the settlement date, the investor will receive all the invested BTC plus the additional interest of the BTC during the period;
- Otherwise, the investor will receive the ETH with the quantity of invested BTC/Strike Price plus ETH interest as a return, (which is equivalent to the client holding equivalently more ETH at the beginning with a fixed high coupon rate).
As for ETH-BTC Dual-Earning Investment, ETH as the principal is acceptable, and the settlement process is similar to the BTC-ETH Dual-Earning Investment. However, the converting condition will be changed to that the Final Price should be higher than the Strike Price, if this is satisfied, investors get BTC with the quantity of ETH*Strike Price with BTC interest, otherwise, they gain ETH and ETH interest.
Example: 📈
Suppose Alex has invested his 100 BTC in BTC-ETH Dual-Earning Investment when the product specification is such: BTC @ $40000, ETH @ $4000, with APY @ 10%, matures at 90 days later, and Strike Price = 0.09.
In a stable market:
i>If the prices of BTC and ETH are $40,000 and $4,000, we compute the Final Price 0.1 > 0.09, then Alex could get:
- BTC: 100*(1+10%*90/365) = 102.4658
He then got 2.4658 extra BTC in return!
In a bear market:
ii>If the price of BTC and ETH plunge to $36,000 and $3,000, we get the Final Price 0.083 < 0.09, the Alex would get:
- ETH: 100/0.09*(1+10%*90/365) = 1138.508
Remember he only had 1000 value equivalent ETH at the beginning of investing period, so he got an extra 138.508 ETH in end!
iii>If the price of BTC and ETH plunge to $30,000 and $3,000, we calculate the Final Price 0.1 > 0.09:
- BTC: 100*(1+10%*90/365) = 102.4658
Alex could get 2.4658 extra BTC in return, which is good compensation for the risk of the downtrend pressure on BTC price.
In a bull market:
vi>If the price of BTC and ETH reach $55,000 and $4,400, we compute the Final Price 0.08 < 0.09:
- ETH: 100/0.09*(1+10%*90/365) = 1138.508
He not only gets an extra 1138.508 ETH for free but enjoys the results of a raised $400 value of ETH, which means BTC-ETH Dual-Earning Investment Reach an APY of 100.5% in such a market condition.
v>If the price of BTC and ETH reach $50,000 and $5,000, with Final Price 0.1 > 0.09:
- BTC: 100*(1+10%*90/365) = 102.4658
He would enjoy free 2.4658 BTC and the appreciation of the assets in the bull market.
Feature: 🏦
- Earn coins in a high volatility market;
- Fixed APY computed based on BTC and ETH, rather than USDT;
- Earn coins in a limited supplied BTC and deflation-ish ETH situation;
- We provide flexible tenors of Dual-Earning investment for investors to choose from;
- Especially Suitable for main coin holders, crypto believers, and coin miners.
Term Definition: 📋
- Investment Currency: Principal Currency, the kind of digital asset an investor would invest.
- Settlement Currency: Redemption Currency, the kind of digital asset an investor would receive.
- Term Yield: Term Yield is the income return on investment for a certain time period. This is calculated by APY*ACT/365.
- Annual Percentage Yield (APY): APY is the rate you can earn on an account over a year and it includes compound interest.
- Expiry Date: Expiry Date is the date when your investment project would be settle
- Initial Price: The beginning ratio of ETH/BTC of a product, none unit (same as follows).
- Strike Price: The fixed ratio of ETH/BTC of a product which is the benchmark ratio we may convert your BTC to eth.
- Final Price: The ending ratio of ETH/BTC of a product, which is a comparable figure to Strike Price, for judging if we trigger converting process.
FAQs:🙋
1. Can I redeem the investment before the expiry date?
Any kind of early redemption is not allowed before the expiry date. Mind this is a closed-end investment product.
2. Where can I find the reference price of BTC and ETH?
A reliable reference where you can find the price of BTC and ETH is www.cfbenchmarks.com. Besides, we will send you a confirmation email to inform you of every detailed specification of the investment product in that period.
