XT Structured Financial Management - Shark Fin
The Shark Fin is a type of structured financial product that allows users to invest in stablecoins (such as USDT) and earn returns based on the volatility of cryptocurrencies. This product typically has no service fees and guarantees the investment principal, which means the initial investment amount is protected.
It combines the guaranteed returns of fixed-income investments with the fluctuating returns of option premiums in the derivatives market. The name 'Shark Fin' is derived from its yield curve, which resembles the fin of a shark emerging from the water. For conservative investors who prefer low-risk and stable income, this is a stable and high-yield investment method.
Subscribe Link: https://www.xt.com/en/finance/shark-fin
The principle of Shark Fin:
XT Shark Fin divides various categories of cryptocurrency assets into two directions: bullish and bearish.
Taking BTC Shark Fin as an example, investors can select the appropriate direction based on their forecasts for the BTC market with a predetermined price range. During the subscription period, if the BTC price remains within the predetermined range, investors can earn a higher return rate. If the BTC price exceeds or falls to this range, investors will only receive the guaranteed return rate.
The Advantages of XT Shark Fin:
- Zero Risk: Principal protection and stablecoin investment to avoid market risks.
- Guaranteed and Variable Returns: Industry-leading 8% minimum return. Under certain conditions, you can earn higher variable returns.
- No Service Fees: No additional service fees for the investment.
- High Liquidity: Short product duration, usually 3 or 7 days.
- Automatic Renewal: After maturity, funds can be automatically reinvested to continue earning returns.
How to calculate returns?
As shown in the above figure: The guaranteed APR of the Shark Fin is 8%, the minimum APR within the floating range is 10%, and the maximum APR is 18%.
BTC/USDT specified price range: $60,000 -- $65,000.
If the settlement price of the Shark Fin remains within the specified price range ($60,000 ≤ settlement price ≤ $65,000) throughout the subscription period, then the APR calculation formula at maturity is as follows:
The Settlement APR = Minimum APR + (Settlement Price - Lower Limit) / (Upper Limit - Lower Limit) * (Maximum APR - Minimum APR)
Final Interest = Investment Principal * Settlement APR * Investment Term / 365.
If the settlement price during the subscription period falls below the lower limit price or exceeds the upper limit price (settlement price < $60,000 or > $65,000), the APR will be settled only according to the minimum APR.
Final interest = initial principal * guaranteed APR * investment term / 365.
Income Case Study 1
Taking Bullish Shark Fin as an example:
Predetermined price range: BTC/USDT $60,000 -- $65,000, APR range: 10%--18%, Guaranteed APR: 8%. Principal: 10,000 USDT. Investment term: 7 days.
Scene 1:
During the subscription period, the price of BTC/USDT consistently remained within the pre-specified price range of $60,000 to $65,000. On the settlement date, if the settlement price of BTC/USDT is $64,000, the calculation method for settlement APR is as follows:
10% + （64,000 - 60,000）/ (65,000 - 60,000) * (18% - 10%) =10% + 4000/5000 * 8% = 16.4%
Final Interests: 10,000 * 16.4%* 7/365 = 31.45 USDT
Scene 2:
During the subscription period, if the price of BTC/USDT is higher than $60,000 or lower than $65,000, it is not within the pre-specified price range. On the settlement date, the final APR will be the guaranteed APR: 8%.
Final Interests: 8%* 10,000 * 7/365 = 15.34 USDT
Risk Notice:
- The settlement APR on the settlement date depends on whether the cryptocurrency price during the subscription period is within the pre-specified price range. Significant fluctuations in prices during the subscription period may result in slippage, leading to settlement APR being the guaranteed APR.
- The Shark Fin is a fixed-term financial product and cannot be redeemed early before the settlement date.
- When the market fluctuates steadily within the pre-specified price range, Shark Fin can achieve higher returns. However, if there is significant volatility during the subscription period and the price falls outside the price range, investors will only receive the guaranteed APR.
FAQ:
1. Does the Shark Fin involve any risks?
The Shark Fin is a capital-protected financial product. For conservative investors who prefer low risk and stable returns, this is a simple and suitable investment method.
2. Will the specified price range change during the subscription period?
Due to market volatility, XT.com may adjust the preset price range before the Shark Fin product starts accruing interest. However, once the Shark Fin starts accruing interest, the specified price range will no longer change. Therefore, investors can patiently await the final settlement of returns.
3. How are returns calculated under two different settlement scenarios?
During the subscription period, if the settlement price falls within the pre-specified price range, the Final APR is calculated as follows:
Final APR = Minimum APR + (Settlement Price - Lower Limit Price) / (Upper Limit Price - Lower Limit Price) * (Maximum APR - Minimum APR)
If the token price exceeds or falls to the pre-specified price range during the subscription period, the final APR will be equal to the guaranteed APR.
4. When can investors receive their principal and interest?
Investors will receive their principal and interest in their XT account 4 hours after the Shark Fin settlement time.
How to work:
Steps for Web Interface:
- Please log into your XT account. If you are a new user, please click Here to register first. Then, select 'Finance' - 'Shark Fin' on the navigation bar.
- Please select either Bullish or Bearish Shark Fin, then choose the product based on the floating APR range, guaranteed APR, subscription period, and start time. You can also view the settlement APR of historical Shark Fins.
- Select the desired Shark Fin product and click the 'Subscribe' button. Then, in the 'Subscribe Popup', review the guaranteed APR, floating APR range, and minimum subscription amount. Enter the subscription amount and click the 'Confirm' button.
- After successful subscription, you can click 'View Positions' or select 'Funds' - 'Earn' - 'Shark Fin' in the top right corner of the navigation bar to check subscription earnings and status.
Steps for APP:
- Click 'Earn Overview' on the homepage or on the 'Assets' icon at the bottom right of the App, then select 'Earn' - 'Earn Overview'.
- Click on 'Shark Fin', choose the desired Shark Fin product, and then click to enter the subscription popup.
- Input the desired subscription amount, then click 'Confirm' to successfully subscribe. To view subscription details, click 'View Positions', or return to the 'Assets' - 'Earn' section to check your holdings.