The Lotto uses an event-driven strategy to earn up to 100x returns with a small investment during times of big fluctuations.
For example, when the Federal Reserve raised the benchmark interest rate by 75 basis points on July 28th, the US stock market rose sharply. As a result, ETH rose by 13%, and BTC rose by more than 10%. If you know a macro event will cause big moves, buying lottos beforehand can earn up to 100x your investment or help hedge your existing positions.
What is the Lotto？
The Lotto is a non-guaranteed investment product that allows users to obtain high returns with a small investment. It is a tool that helps users make outsized returns with a small investment or hedge existing positions.
Divided into the Bet Up Lotto and Bet Down Lotto.
How do you play?
- Take a guess at what the underlying price will reach (up or down)
- Hedging of spot holdings (protection for when prices drop)
The following examples apply to both scenarios:
Suppose the current price of ETH is 2000, you believe that the price of ETH will drop sharply in 2 days and the price will fall below 1600.
That is, buy 1 Bet Down lotto with a 2-day expiration and a strike price of 1600, with a doubling factor of 13.62USDT (meaning every 13.62 * 1USDT price movement your return will increase by your initial investment) . If the settlement price is less than 1600, for example we ended at 1550. The income is 3.671, and the yield is 367.1%. If the settlement price is greater than or equal to 1600, your lotto will return nothing.
Guess the rises and falls by 1USDT, choose your strike price you want, and when the coefficient falls below 1600, you will earn 1USDT for every 13.16 * 1USDT drop.
(The closer the strike price is to the current price, the larger the doubling factor, and the farther from the current price, the smaller the doubling factor of the strike price).
What is a strike price?
The strike price is the price that you choose when you believe an asset will close above or below that price. For example, let’s assume BTC is worth $28,000 right now. If you think BTC price will rise above $30,000 the next day, then you can choose a strike price of 30,000. If BTC price closes at 31,000 at the end date you will make 31,000 – 30,000 = 1,000 dollars.
what is Prize ratio
for example: we assume Prize ratio is 1.8,
ETH settlement price is X
When the Lotto is drawn, if the settlement price of ETH is higher than the strike price, you earn double for every 1.8 USDT increases, you can buy multiple shares of Lotto.
If the price rises or falls below the strike price when the lotto is settlement, that is, the lotto is won, and the bonus is not capped.
How do I calculate the actual return？
If you win the lotto, your return will be:
. Bonus for Bet Up Lotto = number of purchases * (BTC Lotto price – strike price) / Prize ratio
. Bonus for Bet Down Lotto = number of purchases * (strike price – BTC Lotto price) / Prize ratio
If your strike price is not higher / lower than your chosen strike price you lose the Bet Up lotto / Bet Down lotto.
How do you invest in the Lotto?
Open the “Derivative” page on the web page at pionex.com and you will see the page “Lotto”.
When the word “Lotto” shows up, you need to:
- Select a coin
- Pick where you think the coin price will go (the underlying price will rise or fall)
- Choose settlement date
- Select a strike price for your Lotto
- Select how much you would like to purchase (1USDT is the minimum)
After your order is confirmed, enjoy your lotto.
The Lotto Highlights
The Lotto is easy to understand. If you think the price will rise sharply the next day, choose to buy the Bullish lotto that expires the next day. You can get the corresponding spread profit if the price rises above the strike price. But you will lose the original investment amount if the price is not above the strike price.
If you hold the spot and do not plan to sell it and believe that the price may fall sharply the next day. You can buy the Bearish lotto to hedge your position. It will reduce the risk of loss and get excess returns.
1. It is a product with a high profit and loss ratio.
2. It’s more comprehensive. It can operate many small coins, which is also the gospel of small coins.
3. You can earn more when the coin price rises and falls sharply.
4. Limited risk and unlimited profit.
5. The product cycle can be up to 365 days, which is the most complete.
1. Carrying part of the risk is unavoidable, losing the invested funds.
2. It will only take effect at the settlement time on the expiry date (settled at 16:00 (UTC+8) on the expiry date).
3. After the subscription, the order cannot be canceled until the order is settled (the funds cannot be billed or retrieved by users during this process)
1. It should be noted that the greater the price increase or decrease, the higher the Lotto profit. Lotto Po is a non-guaranteed investment product.
2. The closer the current price is to the strike price, the higher the invested funds and the lower the profit-loss ratio.
3. The farther the current price is from the strike price, the lower the invested funds and the higher the profit-loss ratio.
4. Different purchase times will not affect the final earnings. The closer the purchase time is to settlement time, the lower the purchase price will be. If the price fluctuates before expiration, there is also the probability of making a profit.
Suitable for the crowd
1. Investors who like high profit-to-loss ratios
2. Investors who are ready to gamble
3. Investors with hedging needs
Frequently Asked Questions
Q: What is the minimum investment amount for the Lotto?
A: The minimum investment amount for the Lotto USDT is 1USDT.
Q: Are there any fees for investing in the Lotto?
A: No fees.
Q: What is the latest time to apply?
A: The subscription quota for each pegged price is fixed. If the subscription has been completed on the day, it cannot be subscribed again. If the subscription has not been completed, the subscription can still be made before 15:00 pm (UTC+8).
Q: Why is the system all settled at 16:00 (UTC+8)? Can’t I choose what time to settle?
A: There is no way to choose the settlement time by yourself. All the Lotto products are settled at a fixed time of 16:00 (UTC+8).
Q: I see that the K-line chart shows that the Lotto price at 16:00 (UTC+8) is 41,112USDT. Why is the Lotto price displayed in my historical order 40,075USDT? Whether Are there other reasons?
A: No, the Lotto drawing price of Pionex is the average price 30 minutes before the expiration date of the investment product at 16:00 (UTC +8), and it is a comprehensive consideration of 6 leading exchanges ( Bitstamp, Coinbase Pro, Gemini, Kraken, Itbit, LMAX Digital ) prices.
The purpose is to avoid the occurrence of error by a single exchange price and result in losses to users.