In the fast-evolving world of cryptocurrencies, the potential for financial growth and diversification has captured the attention of both seasoned investors and newcomers alike. Among the platforms that have gained significant prominence in recent years, Binance stands out as a leading global cryptocurrency exchange. However, Binance offers more than just a platform for trading. Enter Binance Earn — an innovative feature that allows users to put their idle crypto assets to work and generate passive income.
In this article, you will learn about a new Binance Earn product named ‘Range Bound’ as I look forward to explaining:
What is Range Bound?
Two What-if scenarios on using Range Bound:
What happens when the price stays within the selected Price Range?
What happens when the Reference Price of the chosen digital asset is equal to or exceeds the Upper/Lower Price Range?
What is the “Beginner” label on certain price ranges?
What are the risks involved with Range Bound?
What is Range Bound?
Range Bound is a recently launched Earn product on Binance which allows users to earn rewards when the Reference Price of their chosen digital asset stays entirely within the selected Price Range during the Subscription Period.
Range Bound allows users to select the Price Range and Settlement Date that most suit their needs from the wide variety of options available.
Users may decide the portion of their Subscription Amount to be forfeited (i.e., the Subscription Amount at Risk) if the Reference Price ever touches or exceeds the Upper/Lower Range of the selected Price Range during Subscription Period, to potentially receive high APR in token rewards. The higher the Subscription Amount at Risk, the higher the Potential APR goes.
If the Reference Price stays within the Price Range, the user will not forfeit the Subscription Amount at Risk and be entitled to the corresponding APR. If the Reference Price touches or exceeds the Upper/Lower Range of the selected Price Range, users will have their Subscription Amount at Risk forfeited without receiving APR.
Two What-if Scenarios on Using Range Bound:
1. What happens when the price stays within the selected Price Range?
If the Reference Price of the user’s chosen digital asset stays within the selected Price Range during the entire Subscription Period, users will receive rewards based on the Potential APR displayed during subscription at the Settlement Date, in addition to the digital assets deposited during the subscription.
Example:
You have deposited either BTC, BNB, ETH or USDT and the Reference Price of the chosen digital asset (BTC for example) is maintained within the selected Price Range during the entire Subscription Period. You will receive the initial deposit amount plus the rewards based on the Potential APR on the Settlement Date in the respective digital asset deposited during the subscription.
2. What happens when the Reference Price of the chosen digital asset is equal to or exceeds the Upper/Lower Price Range?
If the Reference Price of the chosen digital asset is equal to or exceeds the Upper/Lower Price Range of the selected Price Range at any point during the Subscription Period, users may receive an amount less than what they initially deposited. This potential loss is the Subscription Amount at Risk (the portion of the Subscription Amount to be forfeited if the Reference Price is ever equal to or exceeds the Upper/Lower Range of the selected Price Range) that user selected when they subscribed to Range Bound; users will not be entitled to any rewards.
Example:
You have deposited either BTC, ETH, BNB or USDT, and the Reference Price of the chosen digital asset (BTC for example) touches and/or exceeds the selected Price Range at any point during the Subscription Period. You will receive the initial deposit amount and will not be entitled to any rewards.
OR
You have deposited either BTC, ETH, BNB or USDT into a subscription with Subscription Amount at Risk. The Reference Price of the chosen digital asset (Let’s take BTC as example again) touches and/or exceeds the selected Price Range at any point during the Subscription Period. At the end of the Subscription Period, you will receive less than the initial deposit amount (BTC, BNB, ETH or USDT) and will not be entitled to any rewards.
What is The “Beginner” Label on Certain Price Ranges?
When a certain price range has a “beginner” label, then it simply means that the user can choose an APR option with just 0% ‘Subscription Amount at Risk’.
What Are The Risks Involved with Range Bound?
It’s certainly known that every investment that has gain must have some risks associated with it; here are the risks associated with Binance Range Bound.
The subscribed assets are locked, and you will not be able to cancel or redeem them before the Settlement Date.
For certain Range Bound products, you may receive less than the initial deposit amount if the Reference Price of the chosen digital asset goes out of the predetermined price range.
Aside from these, all your assets remain safe!
How to Get Started with Range Bound on Binance
To get started with this product, follow this process step by step as explained below (Explained using both web and mobile app):
Using Web
Step 1.
Login to your Binance account.
Step 2.
Navigate to the items listed at the top side of your screen, click on ‘Earn’ then select ‘Range Bound’.
Step 3.
Choose a digital asset (BTC, BNB or ETH).
Step 4.
Select an option that fits your preferred Price Range, Potential APR, and Settlement Date. Click on ‘Subscribe’ to proceed the proceeding procedure.
Step 5.
Enter the amount you would like to subscribe. You can subscribe using stablecoin (USDT) or token (BTC, BNB or ETH).
Step 6.
Select the Potential APR you wish to earn at the end of the Subscription Period. Please note that the higher the APR, the greater the Subscription Amount at Risk.
Step 7.
Read, understand and agree to the Service Agreement, check the confirmation box and click on ‘Confirm’ to subscribe.
Using Mobile App
Step 1.
Login to your Binance account
Step 2.
Click on this ‘More’ icon
Step 3.
Scroll down to ‘Earn’ section and select ‘Range Bound’ to proceed the proceeding procedure.
Step 4.
Choose your preferred digital asset which can be BTC, ETH, or BNB, select any of the Price Ranges that suits you and Settlement Date as well then proceed to click on ‘Subscribe’ to proceed. You can also tap on ‘View Chart’ to view the price history of the digital asset before subscribing as seen in the image below
Step 5.
Enter the amount you would like to subscribe. You can subscribe using stablecoin (USDT) or token (BTC, BNB or ETH) as seen in the image below. Click on ‘BTC’ to switch the subscription asset to any of the stablecoins available.
Step 6.
Select APR and confirm the ‘Subscription at Risk’ in percentage. Please note that the higher the APR, the greater the ‘Subscription Amount at Risk’.
Step 7.
Scroll down to confirm the:
Subscription date
Settlement date; and
Distribution date as seen in the image below
Step 8.
Read, understand and agree to the ‘Service Agreement’ and check the confirmation box. Finally, click ok ‘Confirm’ to finalise the subscription process.
Closing Thought
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 subscription duration, you may earn relatively higher rewards.
Users may receive an amount less than or higher than what they initially deposited, depending on their selected price range and APR. In general, the higher the APR, the higher the risk. Note that the higher the Subscription Amount at Risk, the higher the Potential APR goes.
Here comes the end of it, for anyone with a question should kindly drop it in a comment section and I’ll try as much as possible to reply each and every question.
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Thanks for reading,🚀
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THIS ARTICLE IS SPONSORED BY BINANCE EARN PRO
