Dec 3, 2021
Dual Investment | Description of Rules
These are the rules you need to know before embarking on Antimatter Dual Investment journey.
To start earning yield though dual investment users must first deposit funds from their wallet to their trading account (smart contract) on the platform. The trading accounts are connected to the respective wallet and funds can be withdrawn at any time as long as they aren’t locked in an investment.
Product Types
There are two types of dual investment financial products: “Up-and-Exercised” and “Down-and-Exercised”.
(1) Up-and-Exercised: If the settlement price is higher than the strike price, then the product will be “exercised”.
- Settlement price ≥ strike price, then exercised;
- Settlement price < strike price, then it will not be exercised.
(2) Down-and-Exercised: If the settlement price is below the strike price, then the product will be “exercised”.
- Settlement price ≤ strike price, then exercised;
- Settlement price > strike price, then it will not be exercised.
Regardless of the underlying asset, if the product is not exercised, the subscriber will receive a return on their investment in the form of the currency they invested. If the product is exercised at Delivery date, the subscriber will receive a return on the investment in the form of the alternative currency.
Example:
Let’s say you have 1 BTC and the current BTC reference spot price is $56,964. You want to subscribe to the top Up-and-Exercised Dual Investment product. The strike price is set to $58,000 with a 62.65% APY.
You type purchase the amount with 1 BTC as the underlying asset. On the Delivery Date (say 7 days later), one of two things will happen:
1. If the BTC final settlement price is above or equal to $58,000, your 1 BTC is paid out at $58,000 plus the extra interest. You now have $58,696 USDT.
If the BTC final settlement price is below $58,000, you’ll get your 1 BTC back plus interest worth 0.012 BTC. You now have 1.012 BTC.
Settlement and settlement price
Each subscription has a specified Delivery date date and the average spot price of the last 30 minutes before 12:00 (UTC+8) on the Delivery date date will be used as the settlement price.
The spot price is sourced from ChainLink.
Yields Calculation
1. When a product is “exercised”, the subscription amount and yields will be swapped at the strike price in the alternative currency.
Up-and-Exercised: Yields = (Subscription Amount * Strike Price) * [1 + (APY % * Period (days) / 365)]
Down-and-Exercised: Yields = (Subscription Amount / Strike Price) * [1 + (APY % * Cycle (Days) / 365)]
2. When a subscription is “unexercised”, the subscription amount and yields will not be transferred into the alternative currency and the user will receive the currency they invested.
Yields = Subscription Amount * [1 + (APY% * Period (days) / 365)]
Yields will be automatically credited to the user’s account within 24 hours of settlement.
APY
APY = return ratio / (Delivery date — purchase date) * 365*100%
APY is constantly changing and is obtained in real time, depending on the strike price, the remaining time to Delivery date and the volatility of the market price. For example, the lower the strike price, the longer the time to Delivery date and the more volatile the market price, as well as the higher the APY.
When a user successfully subscribes to a Dual Investment, it means that the APY at the time of placing the order is settled and it will not change until the Delivery date.
Subscriptions and Redemptions
1. After a successful subscription, the subscription cannot be withdrawn.
2. Redemption in advance is not supported for the time being and users can only receive returns after the Delivery date.
More information including explainer videos will be published, in the meantime please check out our 👉🏽 docs
