In the dynamic world of digital assets, finding a secure investment avenue that offers consistent returns can be challenging. Structured products like SharkFin provide a unique solution for traders seeking to earn stable yields while protecting their capital. This guide explains what SharkFin products are, how they function, and how you can utilize them effectively.
What Is SharkFin?
SharkFin is a principal-protected investment product that allows you to earn returns regardless of market direction—whether it's bullish or bearish. It’s designed to offer a balance of security and opportunity, making it a popular choice among both new and experienced traders.
Key benefits include:
- Capitalizing on market trends. In uncertain market conditions, SharkFin guarantees a base return. If your market prediction is correct, you stand to earn an additional yield.
- Zero market risk. Your initial investment is fully protected, even during periods of high volatility.
- No hidden fees. You can start with as little as 1 USDT, and there are no service charges.
- Flexible investment terms. Choose from short-term periods such as 1 day, 3 days, or 7 days. Returns are distributed automatically upon maturity.
How Does Bullish SharkFin Work?
The annual percentage yield (APY) of a SharkFin product depends on three factors: the predefined price range, the settlement price at maturity, and the product’s calculation mechanism. Returns are determined based on where the settlement price falls in relation to the price range.
There are three possible scenarios:
- If the settlement price is below the price range: you receive the base yield.
- If the settlement price is within the price range: you earn an enhanced yield.
- If the settlement price is above the price range: you receive the base yield.
Example of a Bullish SharkFin Product
Consider the following hypothetical scenario:
- Investment: 1,000 USDT
- APY Range: 1% – 18%
- Term: 7 days
- BTC Price Range: $18,000 – $21,000
Note: This is an illustrative example and does not represent actual future returns.
Scenario 1: Settlement price below the range
Settlement Price = $17,000 (< $18,000)
APY = 1%
Earnings = 1,000 × 1% × 7/365 ≈ 0.192 USDT
Scenario 2: Settlement price within the range
Settlement Price = $19,500 (between $18,000 and $21,000)
APY = 4% + [(19,500 – 18,000)/(21,000 – 18,000)] × (18% – 4%) = 11%
Earnings = 1,000 × 11% × 7/365 ≈ 2.110 USDT
Scenario 3: Settlement price above the range
Settlement Price = $24,000 (> $21,000)
APY = 1%
Earnings = 1,000 × 1% × 7/365 ≈ 0.192 USDT
How Does Bearish SharkFin Work?
A Bearish SharkFin operates under the same principles as the bullish version but is designed for markets where the investor expects the price to remain below a certain level. The relationship between the predefined price range and the settlement price remains critical in determining returns.
Example of a Bearish SharkFin Product
Using the same hypothetical parameters:
- Investment: 1,000 USDT
- APY Range: 2% – 19%
- Term: 7 days
- BTC Price Range: $18,000 – $21,000
Scenario 1: Settlement price below the range
Settlement Price = $17,000 (< $18,000)
APY = 2%
Earnings = 1,000 × 2% × 7/365 ≈ 0.384 USDT
Scenario 2: Settlement price within the range
Settlement Price = $19,500
APY = 19% – [(19,500 – 18,000)/(21,000 – 18,000)] × (19% – 4%) = 11.5%
Earnings = 1,000 × 11.5% × 7/365 ≈ 2.205 USDT
Scenario 3: Settlement price above the range
Settlement Price = $24,000 (> $21,000)
APY = 2%
Earnings = 1,000 × 2% × 7/365 ≈ 0.384 USDT
How to Purchase SharkFin Products
You can easily subscribe to SharkFin products through the following steps:
- Log in to your account.
- Navigate to Finance > Earn.
- Select Structured Products and then choose SharkFin.
- Browse available products and select one that fits your strategy.
Please note: The maximum subscription amount per main account is 5,000,000 USDT. This is also subject to an overall platform subscription limit (actual values are shown on the product page).
Investing in BETH SharkFin Products
SharkFin BETH products are also available. They follow the same rules as USDT-based SharkFin but use BETH (a token representing staked Ethereum) as the underlying asset.
To subscribe:
- Visit the web platform.
- Go to Finance > Earn.
- In the search bar, type “BETH” and locate the BETH SharkFin product.
- Follow the prompts to complete your subscription.
Important notes:
- When you subscribe to a BETH SharkFin, you will no longer receive standard staking rewards for BETH. You will only earn yields from the SharkFin product.
- Your principal is protected. After maturity, you can redeem your BETH 1:1 for ETH.
- Interest accumulation begins at 4:00 PM on the day of subscription. For example, if the product period is from the 10th to the 17th, the interest start time is 4:00 PM on the 10th.
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Frequently Asked Questions
What is the main advantage of SharkFin products?
The primary benefit is principal protection combined with the potential for higher returns. You are guaranteed not to lose your initial investment, and you can earn more if the market moves as anticipated.
Can I redeem my investment before the maturity date?
No, SharkFin products are designed to be held until maturity. Early redemption is generally not permitted.
Is there a minimum investment amount?
Yes, the minimum investment starts from just 1 USDT, making these products accessible to a wide range of investors.
How are returns calculated?
Returns depend on where the settlement price lands relative to the predefined price corridor. A precise formula determines your final yield, which can range from the base rate to an elevated APY.
Are SharkFin products available for all cryptocurrencies?
Currently, these products are offered mainly for major cryptocurrencies like BTC and ETH. Always check the latest offerings on the platform.
What happens if the market is highly volatile at maturity?
Since returns are based on the settlement price at a specific time, short-term volatility near maturity can impact your final yield. However, your initial capital remains safe.
SharkFin structured products offer a compelling mix of security and earning potential. Whether you're looking to hedge against market downturns or capitalize on anticipated price movements, they provide a versatile tool for portfolio diversification. Always ensure you understand the product terms and conditions before investing.