What is dual currency investment (DCI)? How does dual currency investment work?
Dual currency investments (DCIs) are a form of structured investment where you are exposed to foreign exchange risks.
Under this structure, your investments are made in one (1) currency (called base currency).
At maturity, depending on the exchange rate, your banking institution has the option to pay out the principal plus interest in the base currency or in another currency (called alternative currency).
1. How dual savings work in Binance?
In Binance with Dual Savings, the user purchases a currency, and the final settlement takes place in either BTC or BUSD. Upon expiration, the final settlement currency is determined by comparing the price of the coin and the pegged price at the time of settlement. Dual Currency Investments is a non-principal-protected financial management product that offers floating returns. Although the rate of return is fixed, the final settlement is determined based on the settlement price and the pegged price. Therefore, the risk associated with Dual Currency Investments mainly lies in the high rate of market volatility. Users are advised to invest with caution once they fully understand the risks.
To access Dual Savings log in to your Binance account, click on Finance, then click Binance Pool and click Dual Savings.
If you do not have a Binance account, open an account using this special referral link. https://www.binance.com/en/register?ref=37295726
2. How can I view my orders?
Navigate through your orders and select Dual Savings orders. Under Subscriptions, you can view your current subscription items. You can check your expired subscriptions for which payment is due under Paid Back.
Assets frozen in the corresponding currency in your Pool wallet are the assets that are currently subscribed.
3. When will I get my earnings?
Each purchased product has a product expiration date. Once the product reaches the expiration date, the item will undergo settlement, at which time the principal and earnings will be settled to your Spot account.
4. Can I return a product?
Once a product has been purchased, the action cannot be undone. Early redemption prior to the expiration date is also not supported.
5. Here's an example of a Dual Currency Investments product:
Strike price: 12,000 USDT
Cycle: 31 day
Annualized rate of return: 20%
Coin invested: BTC
Suppose that User A invests 1 BTC in the Dual Savings product shown above on August 1, 2020. When the product expires on September 1, 2020:
If the BTC/USDT settlement price is less than $12,000, User A will receive earnings of 1.7% (31 / 365 × 20%) BTC, in which case the user will be paid back 1 × (31 / 365 × 20%) BTC, or 1.017 BTC.
If the BTC/USDT settlement price is greater than $12,000, User A will receive earnings of 1.7% (31 / 365 × 20%) USDT, in which case the user will be paid back 1 × (31 / 365 × 20%) USDT, or 12,204 USDT.
In short, when the product expires, User A will receive earnings of 1.7% (31 / 365 × 20%) no matter what. The only variable is which coin the user will receive when they're paid back, which depends on the BTC/USDT settlement price at the time of expiration.
6. Do Dual Savings products offer steady returns without the risk of losing money?
No. There are certain risks associated with Dual Savings. Your assets may be converted into another asset type during periods of high market volatility. During a downtrend, you'll be able to earn more BTC, whereas, during an uptrend, you'll be able to earn more stablecoins.
7. What is the "strike price" used in Dual Savings?
For BTC products, the strike price is the price at which BTC is being sold when your assets are converted to BTC at the product exercise time, or for BUSD/USDT products, it is the price at which BTC is being bought when your assets are converted to BUSD/USDT.
8. Why does the strike price keep changing?
The reference strike price mentioned in the announcement may not be the same as the final strike price. The actual strike price will be adjusted based on changes in the spot price during the 24 hours after the offer period kicks off.
9. Why did my BTC disappear when the product expired?
If the settlement price of a BTC product is greater than the strike price at the time of expiration, the BTC you invested will be converted into BUSD based on the strike price and returned to your spot account.
10. Why did my USDT/BUSD disappear when the product expired?
If the settlement price of a USDT/BUSD product is less than the strike price at the time of expiration, the USDT/BUSD you invested will be converted into BTC based on the strike price and returned to your spot account.
11. Once I subscribe to a Dual Savings product, when will I be able to redeem my assets?
Dual Savings cannot be redeemed early. After the product expires, your original investment or the corresponding amount of BTC/BUSD will be returned to your spot account.
12. How long will it take for the funds to land in my account after the Dual Savings product expires?
Funds will be returned to your spot account within 48 hours.
13. How is the settlement price calculated at expiration?
Settlement price calculation method: The BTC index price used for our products is calculated based on the BTC/USD trading price on the world's top 7 cryptocurrency trading platforms: Bitstamp, Bittrex, Coinbase Pro, Gemini, Kraken, Itbit, and LMAX Digital. At the time of settlement, the highest and lowest prices pulled from these exchanges are discarded, and the mean price of the remaining 5 exchanges is used as the final settlement price. The exact settlement time is 08:00 (UTC) on the day of expiration.
14. How can I view my order details?
Web: Your order details are displayed in the upper right corner on the Dual Savings page.
App: Binance Pool -> Dual Savings -> upper right corner.
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