Dual Investment
Buy low and sell high with transparent return calculations.
Product Info
Mode Comparison
| Classic | Booster | Extra | |
| Exercise Price | Target Price | Target Price | Protection Price (if higher than Target Price) |
| Options Used | Principal + Profit from exercising options (coins converted at target price) | Principal, no additional profit (coins converted at target price) | Principal + Profit from exercising options (coins converted at target price) |
| Without Options | Principal + Profit | Principal + Enhanced Principal Returns | Principal + Profit |
FAQ
1. What is Dual Investment?
Two coin types can be used for purchasing the same underlying asset. For example, in the case of BTC, you may use BTC itself or USDT.
2. Why is Dual Investment categorized as a non-principal-protected KuCoin Earn product?
Dual Investment is a non-principal-protected product whose primary source of risk comes from potential changes in market prices. When markets are volatile, it may be difficult to predict how much the market price may differ from the target price. Before subscribing, make sure you understand the product and are aware of potential risks.
For example: User A invested 1 BTC in a Dual Investment product with a target price of 20,000 USDT, an APR of 300%, and a term of 14 days. When the product matures, User A will receive: If the BTC/USDT settlement price ≥ 20,000 USDT, then USDT will be used for settlement and payment, where the payment amount = 1 * (1 + 300% * 14/365) * 20,000 = 22,301 USDT. If the BTC/USDT price rises to 23,000 USDT, the value of User A's 1 BTC would be 23,000 USDT (had User A not subscribed to a Dual Investment product), whereas User A now only has 22,301 USDT. The difference between the two is the hidden loss, which would be 699 USDT.
3. How are my profits calculated?
1) If BTC (or ETH) is invested, the settlement coin and settlement amount are determined as follows:
Scenario | Settlement Amount | Settlement Coin |
|---|---|---|
| Settlement price < Target price | (Investment amount)*(1+APR) | BTC (or ETH) |
| Settlement price ≥ Target price (Exercise) | (Investment amount)*(Target Price)*(1+APR) | USDT |
For example, if for a BTC product, the target price is 40,000, the APR is 5%, and the user puts in 1 BTC, then when the product settles, the user will receive
If the BTC settlement price is < 40,000, the user will receive 1*(1+5%) = 1.05 BTC.
If the BTC settlement price is ≥ 40,000, the user will receive 1*40,000*(1+5%) = 42,000 USDT.
2) If USDT is invested, the settlement coin and settlement amount are determined as follows:
Scenario | Settlement Amount | Settlement Coin |
|---|---|---|
| Settlement price > Target price | (Investment amount)*(1+APR) | USDT |
| Settlement price ≤ Target price (Exercise) | Investment amount/Target price*(1+APR) | BTC (or ETH) |
For example: if the target price for a BTC-USDT product is 40,000, the APR is 5%, and the user puts in 50,000 USDT, then when the product settles, the user will receive:
If the BTC settlement price is > 40,000, the user will receive 50,000*(1+5%) = 52,500 USDT.
If the BTC settlement price is ≤ 40,000, the user will receive 50,000 / 40,000 * (1 + 5%) = 1.3125 BTC.
As can be seen from the above example, that the settlement coin may not be the coin originally purchased.
Settlement Price: The average index price between 07:30 – 08:00 (UTC) on the day of settlement.
4. Terms
- Investment Coin:The cryptocurrency used to buy the Dual Investment product.
- Target Coin:The coin used for price calculations when you buy Dual Investment products. For example, BTC is the target coin for both the BTC and BTC-USDT Dual Investment products.
- Settlement Coin:The cryptocurrency received at the time of settlement. This settlement coin is determined by comparing the target coin's settlement price with the target price.
- Target Price:The target price is compared with the settlement price at the time of settlement in order to determine the cryptocurrency used for the final settlement. Once a product purchase is confirmed by the user, the target price will be locked in and will not change throughout the duration of the product.
- Settlement Price:The settlement price is determined by averaging the BTC or ETH index prices between 07:30 – 08:00 (UTC).
- Settlement Date:The product settlement date is also the maturity date. On the settlement date, your profits will be automatically credited to your Funding Account.
- APR:This is used to calculate the product's annual percentage rate. APR constantly fluctuates and is primarily determined by the target price, the remaining time to product settlement, and price volatility. Once a Dual Investment order is confirmed, the APR will be locked and remain fixed throughout the term of the order.
- Term:The period beginning at the time in which interest starts accruing for the product until the time at which the product settles. Interest starts accruing the hour after the order is submitted.
5. Settlement Time
6. Why are there such large differences between the APRs of different Dual Investment products?
To meet the needs of different users with different investment preferences and risk tolerance levels, we provide a range of products with different target prices and APRs. In general, the higher the APR, the closer the target price to the current price, and the higher the uncertainty with respect to the settlement coin type and settlement price on the settlement date. Therefore, investors can select a product with a suitable target price and APR based on their investment preferences and risk tolerance levels.
7. After subscribing, can I cancel or redeem early (before the settlement date)?
After subscribing, you cannot cancel or redeem before the settlement date. Please carefully read the product and subscription information before subscribing.
8. Where can I view my subscription history?
To view currently subscribed or matured Shark Fin products along with their details, simply access your Financial Account.
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