Pionex Dual Investment

Pionex Dual Investment beta test

Pionex Dual Investment beta test adopts automatic re-investment rules on Dual Investment products, that is, on each opening day, the Target Price is selected according to a pre-specified re-investment rule, and the principal and interest compound interest are used to purchase Dual Investment products that meet the rules. If you do not understand the basic dual investment products, please read the Dual Investment product description at the end.

In order to meet different investment needs, specific automatic re-investment rules have been opened for the following product:

1. USDT dual investment

2. BTC dual investment

3. BTC take profit – auto re-invest

4. ETH take profit – auto re-invest

5. BTC buy low – auto re-invest

USDT dual investment

During the beta test, daily automatic re-investment rule is used for USDT dual investment. The daily automatic re-investment rule is:

If the current holding is USDT, select the Dual Investment due the next day for operation, and the selection method of the target price is as follows:

  • Assuming that the settlement price of BTC on August 9 is X, 0.925 * X is selected and rounded up to a thousand digits as the Target Price (for example, X = 38,800, then 0.925 * 38,800 = 35,890, and the Target Price after rounding up is 36,000). The one-day expected return is about 0.08%, and the corresponding annual return is about 30%;
  • If the annualized yield of 0.925 * X rounded down to a thousand digits as the pegged price is less than 10%, a new Target Price with 1000 higher than old Target Price will be selected as the Target Price.

If the USDT held is exchanged for BTC, Early Settlement will be triggered. The user will receive BTC as the settlement currency.

The above operations can obtain USDT returns in the long-term upward trend of BTC. The average annual return is about 15% -45%.

Final settlement condition(If one of the following conditions was triggered, you will receive dual investment settlement through deposit):

1、USDT was converted to BTC;

2、Running out of active period.

BTC dual investment

During the beta test, the daily automatic re-investment rule is used for BTC dual investment. The daily automatic re-investment rule is:

If the current holding is BTC, select the Dual Investment due the next day for operation, and the selection method of the target price is as follows:

  • Assuming that the settlement price of BTC on August 9 is X, 1.075 * X is selected and rounded down to the nearest thousand as the Target Price (if X = 41,000, 1.075 * 41,000 = 44,075, and the Target Price is 44,000 after rounding down to the nearest thousand). The expected daily rate of return is about 0.05%, and the corresponding annual rate of return is about 20%;
  • If the annualized yield of 1.075 * X is rounded down to thousands as the Target Price is less than 10%, a new Target Price with 1000 lower than the old Target Price will be selected as the Target Price.

If the holding of BTC is exchanged for USDT, Early Settlement will be triggered. The user will receive USDT as the settlement currency.

The above operations can obtain BTC standard investment returns in the trend of BTC shocks. The average annual return is about 10% -40%.

Final settlement condition(If one of the following conditions was triggered, you will receive dual investment settlement through deposit):

1、USDT was converted to BTC;

2、Running out of active period.

BTC take profit – Auto Re-invest

BTC take profit – Auto Re-invest aims to auto-find BTC-USDT dual investment with a fixed target price. Take BTC take profit at 49000 – Auto Re-invest as an example:

During an opening day, auto re-invest tool will look for BTC-USDT dual investment with target price 49,000 and Delivery Date after one day, two days and one week one by one.

  • If the settlement price is below 49,000, the take profit is not successful. You will receive an APY 10%~150% in BTC and your initial investment together with earning will look for next BTC-USDT dual investment with target price 49,000;
  • If the settlement price is above 49,000, the take profit is successful. You will receive an APY 10%~150% in BTC and your initial investment together with earning will be converted to USDT with a price of 49,000. And you will receive USDT as a result.

The above operations can obtain BTC standard investment returns before successful take profit. The average annual return is about 10% -40%.

Final settlement condition(If one of the following conditions was triggered, you will receive dual investment settlement through deposit):

1、BTC was converted to USDT;

2、Unable to find the Take Profit with a Delivery Date earlier than next week and an APY > 8%.

ETH take profit – Auto Re-invest

ETH take profit – Auto Re-invest aims to auto-find ETH-USDT dual investment with a fixed target price. Take ETH take profit at 3500 – Auto Re-invest as an example:

During an opening day, auto re-invest tool will look for ETH-USDT dual investment with target price 3,500 and Delivery Date after one day, two days and one week one by one.

  • If the settlement price is below 3,500, the take profit is not successful. You will receive an APY 10%~150% in BTC and your initial investment together with earning will look for next ETH-USDT dual investment with target price 3,500;
  • If the settlement price is above 3,500, the take profit is successful. You will receive an APY 10%~150% in ETH and your initial investment together with earning will be converted to USDT with a price of 3,500. And you will receive USDT as a result.

The above operations can obtain ETH standard investment returns before successful take profit. The average annual return is about 10% -40%.

Final settlement condition(If one of the following conditions was triggered, you will receive dual investment settlement through deposit):

1、ETH was converted to USDT;

2、Unable to find the Take Profit with a Delivery Date earlier than next week and an APY > 8%.

BTC buy low – auto re-invest

BTC buy low – Auto Re-invest aims to auto-find BTC-USDT dual investment with a fixed target price. Take BTC buy low at 47000 – Auto Re-invest as an example:

During an opening day, auto re-invest tool will look for USDT-BTC dual investment with target price 47,000 and Delivery Date after one day, two days and one week one by one.

  • If the settlement price is above 47,000, the buy low is not successful. You will receive an APY 10%~150% in USDT and your initial investment together with earning will look for next USDT-BTC dual investment with target price 47,000;
  • If the settlement price is below 47,000, the take profit is successful. You will receive an APY 10%~150% in USDT and your initial investment together with earning will be converted to BTC with a price of 47,000. And you will receive BTC as a result.

The above operations can obtain USDT standard investment returns before successful buy low. The average annual return is about 10% -40%.

Final settlement condition(If one of the following conditions was triggered, you will receive dual investment settlement through deposit):

1、USDT was converted to BTC;

2、Unable to find the Buy Low with a Delivery Date earlier than next week and an APY > 8%.

Subscription rules

You can participate in the subscription of Dual Investment at any time. If you complete the subscription before 23:59:59 (UTC + 8) on any trading day, you will open the position on T + 1 day, and you will start to receive profits on T + 2 day.

Redemption Rules

You can make an appointment to redeem the Dual Investment at any time. If you complete the appointment to redeem before 23:59:59 (UTC + 8) on any trading day, you will stop opening positions on T + 1 day, and transfer the principal and income to the account in the form of recharge on the first Saturday after the settlement of T + 1 day. You can find the settlement record of Dual Investment financing in the withdrawal record. Booking redemption requires a Booking Redemption Fee of 0.0005 BTC. When the product expires or is settled in advance, there is no need to pay the scheduled redemption fee.

You can not apply for redemption for Dual Investment with no auto re-invest.

Opening rules

Every Monday to Friday is the opening day, and there is no opening on Saturday and Sunday.

Additional investment rules

To continue to apply for purchase on the basis of existing purchase is to make additional investment.

Description of Dual Investment products

Learn about Dual Investment

Dual Investment is a floating income non-principal protected structured saving product. The yield of the product is clear and fixed at the time of purchase, while the settlement currency is uncertain. When the product matures, the settlement currency depends on the comparison of the settlement price and the pegged price at maturity. Dual Investment products includes BTC-USDT Dual Investment and USDT-BTC Dual Investment.

BTC-USDT Dual Investment

BTC-USDT Dual Investment means that you need to buy in BTC. The settlement currency is BTC or USDT, and the specific settlement currency will depend on the comparison between the settlement price and the pegged price at maturity.

USDT-BTC Dual Investment

USDT-BTC Dual Investment means that you need to buy in USDT. The settlement currency is BTC or USDT, and the specific settlement currency will depend on the comparison between the settlement price and the pegged price at maturity.

Definitions

Investment Currency

Investment Currency refers to the currency in which you need to purchase investment products; BTC Dual Investment financing supports BTC and USDT purchases.

Settlement Currency

The Settlement Currency is the currency you will receive when the product expires. It will be either the investment currency or the USDT. The specific currency in which each product is settled depends on the comparison between the Settlement Price and the Target Price.

Delivery Date

Delivery Date is the date when your investment product is 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 calculated as the equivalent annual return you 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

Target Price

Target Price is a benchmark price. On Expiry Day, the Settlement Price will be compared against this benchmark price. If the Settlement Price is below the Target Price, the product will be settled in Investment Currency (i.e. BTC in this case); otherwise, it will be settled in USDT.

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 BTC-USD exchanges, including Bittrex, Bitstamp, Coinbase Pro, Gemini, Kraken, Itbit and LMAX Digital.

Example

Let’s take a look at how the Dual Investment Product works:

Example 1: Invest BTC for BTC-USDT Dual Investment

Target Price: 60,000

Delivery Date: 1-Oct-2021

Yield: 0.6%

Annualized Yield: 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-Ocy-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, that is, 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, that is, 60,360 USDT.

To sum up, after the product expires, the user will always get 0.6% of the income, the only uncertainty is the currency of the return, which depends on the BTC/USD 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.

To sum up, after the product expires, the user will always get 0.6% of the income, the only uncertainty is the currency of the return, which depends on the BTC/USD settlement price at the time of expiration.

Frequently Asked Questions

Under what circumstances is the Settlement Currency BTC?

When the settlement price at maturity is lower than the target price, the product is settled in BTC.

Under what circumstances is the Settlement Currency USDT?

When the settlement price is higher than or equal to the target price at maturity, the product is settled at USDT.

Can I cancel my purchase before it expires?

After a successful purchase, it is irrevocable, but it can stop the opening of the next opening day by making an appointment for redemption.

Can I redeem it in advance after purchase?

Making an appointment for redemption is supported before expiration, and the redemption button can be operated in Pionex APP.

What are the uncertainties and risks of BTC dual investment?

According to the investment rules, the only uncertainty is the currency of settlement. The settlement currency will be determined by comparing the settlement price at maturity with the target price.

1. The risk of investing in BTC is that if there is a big rise, the holding of BTC will be sold into USDT at the target price. That is to say, the operation logic is similar to the stop-limit order, and there is a risk that the investment currency will be sold;

2. The risk of investing in USDT is that if it falls sharply, the holding of USDT will be bought into BTC at the target price. That is to say, the logic of operation is similar to buy the dip, which has the risk of short-term tied up.

What should I do if my USDT is converted to BTC and tied up?

During the beta test, there will be a BTC re-investment stop-profit plan corresponding to the tied up point. For example, if USDT is replaced by BTC at 49000, a BTC re-investment stop-profit plan with a price of 49000 will be issued. That is to say, every day we look for a BTC dual investment with a price of 49000 until BTC is converted back to USDT.

Where does the income of dual investment come from?

The APY of dual investment comes from a return swap.

Taking the dual investment with a BTC target price of 50,000 USDT as an example, it changes the return after the BTC rises more than 50,000 USDT into the fixed annual income when the BTC price does not rise more than 50,000 USDT, which means you can earn a fixed annual income if the price of BTC does not pass 50,000 USDT.

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