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FAQ
1. What is Range Bound?
Range Bound gives you the opportunity to potentially earn higher rewards when the market is moving sideways (i.e. low volatility). If the price of a selected digital asset stays within the chosen Price Range during the entire subscribed duration, you will earn high rewards.
2. What are the benefits of using Range Bound?
High Rewards: You’ll earn high rewards as long as the price of the chosen digital asset stays within the chosen price range for the selected duration;
Wide Selection: You can choose from a wide variety of digital assets and set the target date and Price Range to your liking;
No Fees: Zero fees involved upon subscription and settlement.
3. When should I use Range Bound?
The cryptocurrency market can be highly volatile, but quite often the price rises and falls within a certain range. When the market is moving sideways and you believe that the market won’t go above or beyond a certain price range, Range Bound would be the perfect product for earning rewards.
With Range Bound, you can earn additional rewards while holding onto them in a sideways market.
Whether you’re an advanced trader or simply a HODLer that wants to earn some extra yield, there are many different reasons why you may decide to use Range Bound. Some of the most common scenarios include:
Grow more crypto: You have crypto and want to earn additional returns while holding onto them in a sideways market;
Grow more stablecoins: You have stablecoins and want to earn additional returns while holding onto them in a sideways market.
4. How do Range Bound products work?
Range Bound products give you an opportunity to earn rewards in stablecoins (BUSD or USDT) and digital assets (BTC or ETH).
Scenario 1
The Referenced Price of the chosen digital asset is maintained within the Price Range during the entire subscribed duration, you will receive rewards equal to the Potential APR at the settlement date.
Scenario 2
The Referenced Price of the chosen digital asset touches and/or exceeds the Price Range at any point during the subscribed duration, you may receive less than the amount you initially deposited.
5. Are there any risks associated with Range Bound?
There are risks involved with Range Bound.
Subscribed assets are locked and you won’t be able to cancel or redeem them before the Settlement Date.
For some Range Bound products, you may receive less than the amount you have initially deposited if the Referenced Price of the chosen digital asset goes out of the pre-determined Price Range.
Please note that Range Bound is not a risk-free investment. Please read through the product terms carefully before making your subscription. Binance is not liable for any losses incurred from price fluctuations.
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