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Dual Investment

What is Binance Dual Investment?

Binance
2020-11-27 05:34
Tutorial Video

What is Binance Dual Investment?

Dual Investment is a non-principal protected structured product with enhanced yield, involving two different currencies. Upon subscription, you can select the underlying asset, deposit currency, subscription amount, and delivery date. Your return will be denominated in the deposit currency or alternate currency, depending on the below conditions.
There are two types of Dual Investment products: “Up-and-Exercised” and “Down-and-Exercised”.
1. For Up-and-Exercised products
If the Settlement Price is above (up) the Strike Price, the product is “exercised” .
  • The product is “exercised” if Settlement Price Strike Price
  • The product is “not exercised” if Settlement Price < Strike Price
2. For Down-and-Exercised products
If the Settlement Price is below (down) the Strike Price, the product is “exercised”.
  • The product is “exercised” if Settlement Price Strike Price
  • The product is “not exercised” if Settlement Price > Strike Price
For both types of Dual Investment products, you will receive the returns in deposit currency if the product is not exercised. You will receive the returns in alternate currency if the product is exercised.
Each subscribed product has a delivery date. We will take the average of the spot price in the last 30 minutes before 08:00 (UTC) on delivery date as Settlement price. *Please make sure that you fully understand the product and the risks before investing.

How to subscribe to Binance Dual Investment

1. Log into your Binance account and click [Finance] - [Binance Earn] - [High Yield].
2. Scroll down the page, find [Dual Investment], then click [View More].
3. Here you will find different products with different underlying assets, such as BTC, BUSD, and USDT.
Each product has a different strike price, delivery date and APY(Annualized Percentage of Yield). When the product you subscribe expires, the respective crypto will be added to your [Spot Wallet] within 48 hours.
*Please note that Dual Investment cannot be redeemed early.

How to calculate my return?

  • When a product is “exercised”, your subscription amount and interest income will be converted into the alternate currency with a strike price as conversion rate. The below formula shows the total amount you will be receiving:
Up-and-Exercised:
(Subscription Amount * Strike Price) * [1 + (APY% * Deposit Days / 365)]

Down-and-Exercised:
(Subscription Amount / Strike Price) * [1 + (APY% * Deposit Days / 365)]

  • When a product is “not exercised”, your subscription amount and interest income will not be converted and you will receive in the deposit currency. The below formula shows the total amount you will be receiving:
Subscription Amount * [1 + (APY% * Deposit Days / 365)]
Example 1
Bob invested 1 BTC on Binance Dual Investment with an “Up-and-Exercised” position. The BTC price was $30,000, and she subscribed to a 30-day product with a 40% annual yield. The strike price was set to $40,000.
When the product expires 30 days later, Bob will get one of the two outcomes:
Scenario 1: BTC is above $40,000
  • Bob gets the value of his 1 BTC back in BUSD, plus the 40% annual yield.
    • Total received: 1*40,000*[1+(40%*30/365)] = 41,315 BUSD
Scenario 2: BTC is below $40,000
  • The product is “not exercised”, Bob gets his 1 BTC back, plus the 40% annual yield.
    • Total received: 1 BTC*[1+(40%*30/365)] = 1.03288 BTC
Example 2
Alice invested 100 BUSD on Binance Dual Investment with a “Down-and-Exercised” position. The BTC price was $30,000, and he subscribed to a 30-day product with a 40% annual yield. The strike price was set to $20,000.
When the product expires 30 days later, Alice will get one of the two outcomes:
Scenario 1: BTC is above $20,000
  • The product is “not exercised”, Alice gets his 100 BUSD back, plus the 40% annual yield.
    • Total received: 100*[1+(40%*30/365)] = 104 BUSD
Scenario 2: BTC is below $20,000
  • Alice gets the value of her 100 BUSD back in BTC, plus the 40% annual yield.
    • Total received: 100/20,000*[1+(40%*30/365)] = 0.0052 BTC

Frequently Asked Questions

1. Are the Strike Price and APY fixed?

The strike price is fixed and will not change. Occasionally, we may stop accepting new subscriptions temporarily if a product has a strike price too close to the current reference spot price.
APY is always changing and this is majorly dependent on the strike price, remaining deposit days, and also price volatility. Once you have subscribed to a Dual Investment product, the APY will be locked in throughout your deposit days and will not change thereon.

2. How can I view my orders?

Please go to [Orders] > [Earn History] > [Dual Investment]. Here, you can view your current subscription and redemption items.

3. When will I get my returns?

Each subscribed product has a delivery date. We will take the average of the spot price in the last 30 minutes before 08:00 (UTC) on delivery date as Settlement price. Your return will be transferred to your spot account within 48 hours from 08:00 (UTC). Dual Investment products cannot be redeemed early. You can only receive the returns after the delivery date, but not earlier.

4. Can I cancel my subscription?

Unfortunately, you cannot cancel your subscription once you have subscribed. Please read through the product terms carefully before subscribing.

5. What are “Strike Price”, “Underlying Asset”, “Deposit Currency”, “Alternate Currency”, “Deposit Days”, and “Settlement Price”?

Strike PriceA set price at which deposit currency will be converted into alternate currency if the product is exercised.
Underlying AssetAn asset on which a Dual Investment product is based. For instance, if you are making reference to BTC spot price and BTC strike price, then the underlying asset is BTC.
Deposit CurrencyThe currency you have used to subscribe to a Dual Investment product.
Alternate CurrencyThe currency you will be receiving if the product is exercised.
Deposit DaysA number of days remaining until the delivery date.
Settlement PriceAverage of the spot price in the last 30 minutes before 08:00 (UTC) on the delivery date. Settlement price and strike price determines whether a product is exercised or not.

6. What types of products do you have in Dual Investment?

Currently, we have two types of underlying assets: BTC and ETH.
The below table summarizes the full list of products we currently have in Dual Investment.
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Terms of the Dual Investment Purchase Agreement