Beginner's guide
Bitget Shark Fin Introduction
Beginner
2022-12-09 | 5m
Bitget Shark Fin
Shark Fin is a principal-guaranteed structured product with a lockup period. It combines a high annual percentage rate (APR) with financial derivatives highly popular within the crypto markets. The name Shark Fin derives from the yield curve, which resembles that of a shark fin sticking out of the water. It's a simple and optimal investment instrument for conservative investors who prefer lower risks and a steady income.
The principle of Shark Fin is to limit and mitigate the effects of price volatility that investors face. It grants investors higher yields only if the asset's price stays within a specified range during the subscription period. Should the price fluctuate outside of the specified range during this period – a phenomenon commonly known as a knockout – the investors will only achieve the guaranteed APR.
Investors can subscribe to the tokens specified by Shark Fin products based on its estimated APR, price range, subscription period, and price range predictions. Traders will receive both principal and yield after their maturity date. Notably, since Shark Fin is a lock-up product, which means early redemption is not supported.
Bitget Shark Fin Advantages
Principal Guaranteed
Despite the price fluctuations, Shark Fin guarantees the principal and base yields for long-term crypto holders with a low tolerance for risk.
Guarantee Basic APR Pursue Higher Yields
Accurately estimating where the price range will be during the subscription period can generate yields much higher than the market average.
One-Click Subscription
Investors who wish to subscribe to Shark Fin will only need to estimate the possible price range and select the corresponding product. The rest will be handled by our system, allowing you to enjoy a lower risk and higher yield.
Maximum Returns
Given the nature of this investment option, Shark Fin can create better yields in relatively stable markets with low volatility. Investors could achieve the maximum returns in the price range recommended by Shark Fin.
How to Calculate Yields
Guaranteed APR: 5%
Min. APR: 7%
Max. APR: 24%
BTC/USDT Prespecified price range: $20,000 -- $22,000
The annualized rate of return (APR) of our Shark Fin product is an interval with upper and lower limits. If the settlement price of Shark Fin is always within the specified price range (ex. $20,000 ≤ settlement price ≤ $22,000) during the subscription period, the APR at maturity will be calculated as:
Final APR = Min. APR + (Settlement price - Lower limit price) / (Upper limit price - Lower limit price) * (Max. APR - Min. APR)
Final returns = Initial Principals * Final APR * Investment period / 365.
If the settlement price falls outside the lower limit price or exceeds the upper limit price (settlement price < $20,000 or >$22,000) during the subscription period, the APR will be settled on Guaranteed APR only.
Final returns = Initial Principals * Guaranteed APR * Investment period / 365.
Earning Case
Bullish Shark Fin subscribed details:
Price range: BTC/USDT $14,000 -- $16,000, APR range: 4% -- 18%, Guaranteed APR: 2%, Principal: 10,000 USDT, Investment period: 7 days.
Scenario 1:
During the subscription period, the price of BTC/USDT is always within the prespecified price range of $14,000 -- $16,000. On the settlement day, if the settlement price of BTC/USDT is $15,500, the final APR is calculated by: 4% + (15,500 - 14,000) / (16,000 - 14,000) * (18% - 4%) = 14.5%
Final returns: 10,000 * 14.5% * 7/365 = 27.808 USDT
Scenario 2:
During the subscription period, if the price of BTC/USDT is higher than $16,000 or lower than $14,000, not within the prespecified price range. On settlement day, the final APR will be the guaranteed APR: 2%.
Final returns: 2%
10,000 7/365 = 3.8356 USDT
Risk Notice
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The final APR on settlement day will be determined by whether the crypto price knocks out the pre-specified price range or not. Note that there may be slippage which causes a lower final APR when the crypto price fluctuates greatly during the subscription period.
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Shark Fin is a fixed-term, lock-up structured product, which can't be redeemed in advance until the end of the subscription period.
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Shark Fin is more profitable for stable market conditions within the specified price range. If the price fluctuates significantly and knocks out the price range during the subscription period, investors can only obtain their guaranteed APR.
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The "Principal Guaranteed" feature of Shark Fin is calculated based on the initial amount of crypto invested. Users should consider any losses caused by the devaluation of their specific crypto itself relative to fiat currencies.
A Tutorial on Bitget Shark Fin
Step 1. Log in to your Bitget account and then visit our homepage. On the top menu banner, you’ll find the “Earn” category. Hover your cursor over it, and you’ll find the “
Shark Fin” option. Click into that.
Step 2. Once you’re on the Shark Fin main page, you’ll be able to browse through the hottest and latest investment products available.
To subscribe to a product, simply hit the “
Subscribe now” button.
That will take you to the subscription page, where you can fill in your subscription amount and double-check everything before clicking on “
Confirm”.
Step 3. After you’ve subscribed to a product successfully, you can monitor your yield and order status through “My Subscription” or the “Assets” pages. For the latter option, please navigate to “Earn account” and then the “
Shark Fin” tab.
Register now and discover a whole new world of financial products at Bitget!
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