What is Dual investment in Pionex?
Dual Investment allows you to buy low at your desired price and date. You can also earn a high-interest yield for the asset. Dual Investment is a non-principal protected structured product. Upon purchasing, you can select the underlying asset, invest currency, investment, and delivery date. Your return will be denominated in the investment currency or alternate currency, depending on the below conditions.
The Settlement Price is below/above the Target Price, and when the delivery date
- The target is reached if Settlement Price > Target Price
- The target is not reached if Settlement Price ≤ Target Price
You will receive the returns in USDT if the target price is reached. You will receive the returns in Target currency if the target price does not reach. Each purchased product has a settlement date. We will take an average of the market price in the last 30 minutes before 16:00 (UTC+8) on the delivery date as the Settlement price.
*Please make sure that you fully understand the product and the risks before investing.
How to invest in Dual investment?
- Sign in to Pionex account and press “Earn” at the top of the page.
- Select the investment coin you want.
- Decide your investment duration.
- Confirm your investment details and “BUY”.
- Input your investment and wait until the order expire.
- Wait to receive your Investment + interest!
How to calculate my return?
When the target price is reached, your investment and interest income will be converted into USDT with a target price as the conversion rate.
Example 1: Invest BTC for BTC-USDT Dual Investment
Target Price: 60,000
Delivery Date: 1-Oct-2021
ROI: 0.6%
APR: 31.29%
Investment Currency: BTC
Assume that the current time is September 24, the BTC price is 48,000, and the user chooses to invest 1 BTC in Dual Investment due in the week.
At 1-Oct-2021:
Scenario 1: If the Settlement Price of BTC on that day is lower than the Target Price of 60,000 USDT, the user will get 0.6% of BTC, that is, 1 * (1 + 0.6%) BTC = 1.006 BTC.
Scenario 2: If the Settlement Price of BTC is higher than the Target Price of 60,000 USDT, the end user will get 0.6% of USDT, that is, 1 * 60,000 * (1 + 0.6%) USDT = 60,360 USDT.
After the order expires, the user will get 0.6% of the income, the only uncertainty is the currency of the return, which depends on the BTC/USDT settlement price at the time of expiration.
Example 2: Invest USDT for USDT-BTC Dual Investment
Target Price: 40,000
Delivery Date: 1-Oct-2021
Yield: 0.6%
Annualized Yield: 31.29%
Investment Currency: USDT
Assume that the current time is September 24, the BTC price is 48,000, and the user chooses to invest 40,000 USDT in dual-currency financing due in one week.
On 1-Oct-2021:
Scenario 1: If the Settlement Price of BTC on that day is lower than the Target Price of 40,000 USDT, the user will get 0.6% of BTC, that is, (40000/40000) * (1 + 0.6%) BTC, that is, 1.1066 BTC.
Scenario 2: If the settlement price of BTC is higher than the Target Price of 40,000 USDT, the end user will receive 0.6% of USDT, that is, 40,000 * (1 + 0.6%) USDT, that is, 40,240 USDT.
After the order expires, the user will get 0.6% of the income, the only uncertainty is the currency of the return, which depends on the BTC/USDT settlement price at the time of expiration.
Definitions
| Investment Currency | The currency in which you have purchased the dual investment. |
| Settlement Currency | The currency you will receive when the order expires. It will be either the target currency or USDT. Each product is settled depending on whether reaching the target price. |
| Delivery Date | The date when the order is settled. Return from the order will be automatically credited into your account on this day after 16:00 (UTC+8) |
| ROI | The income return on investment. It is expressed in percentages and is used to calculate the settlement amount. |
| APR | Annualized Yield is calculated as the equivalent annual return. If continue purchasing with the given yield for a whole year. Annualized Yield = Yield / (Expiry Date – Today) * 365 *The holding period is actuarial to milliseconds. |
| Target Price | Target Price is a benchmark price. On Expiry Day, the Settlement Price will be compared against this benchmark price. |
| Settlement Price | The average of the Settlement Index in the last 30 minutes before 16:00 (UTC+8) on the Expiry date. |
| Settlement Index | Settlement Index is derived from seven leading BTC-USD exchanges, including Bittrex, Bitstamp, Coinbase Pro, Gemini, Kraken, Itbit, and LMAX Digital. |
FAQ
Q： What is the purchase deadline for the dual investment？
A： Please complete the purchase before 15:00 (UTC+8) on the settlement day
Q： What’s the difference between Dual investment and Covered Gain？
A： Covered Gain can not invest in stable coins. (e.g. USDT) Dual investment can purchase with both stable coins or target crypto
Q： The minimum investment？
A： According to the invested currency：
100 USDT, BUSD, USDC / 0.001 BTC / 0.01ETH / 20XRP / 0.2SOL / 20ADA / 0.1BNB / 0.5 FTT / 50XML
Q： Is there a transaction fee？
A： None
Q： Could dual investment redeem or withdraw before being settled？
A： After purchasing the order, it cannot be canceled or redeemed until the settlement date. After settled, will return to your trade account.
Q： What’s the risk of dual investment?
A： According to the rule of dual investment, uncertainty is the settlement currency. The settlement currency will depend on whether the settlement price has reached the target price at the delivery date.
- The risk of investing in BTC, if there is rising sharply, holding BTC will be sold into USDT at the target price.
- The risk of investing in USDT, if there is a slump, holding USDT will be converted into BTC at the target price. (Even the BTC price is lower than the target price)
