To make it easier to understand Dual Investment, we'll use two examples to explain the product in detail, including its features and advantages.

Example 1: Buy BTC or ETH

Assume User A spends 1 BTC purchasing a 30-day HTX BTC-USDT-Dual product with a strike price of 25,000 USDT on June 1. At the purchase date, the BTC price is 20,000 USDT, and the interest income the user can earn from the product is 1,000 USDT. Right after purchase, the user receives the 1,000 USDT interest income, and the 1 BTC deposited will be locked up for 30 days. In this case, User A sells high with the product.

Scenario 1: BTC price is ≤ 25,000 USDT at the expiry date

As the actual BTC price is below or equal to the strike price, the product is "not exercised." So the user can get 1 BTC back and earn 1,000 USDT as interest income from this product. However, if the BTC price falls sharply, for instance, to 18,000 USDT at the expiry date, causing the deposited assets to depreciate by 2,000 USDT. In this case, the interest income will not be able to cover the losses.

Scenario 2: BTC price is ＞ 25,000 USDT at the expiry date

As the actual BTC price is above the strike price, the product is "exercised." User A earns 5,000 USDT and 1,000 USDT interest by selling 1 BTC at the price of 25,000 USDT, a net gain of 6,000 USDT from this product. However, if the BTC price rises dramatically, say, to 30,000 USDT at the expiry date, the user will miss the chance for an extra profit of 5,000 USDT.

Example 2: Buy stablecoins

Assume User B spends 60,000 USDT purchasing a 30-day HTX USDT-BTC-Dual product with a strike price of 15,000 USDT on June 1. At the purchase date, the BTC price is 20,000 USDT, and the interest income the user can earn from the product is 1,000 USDT. Right after purchase, the user receives the 1,000 USDT interest income, and the 20,000 USDT deposited will be locked up for 30 days. In this case, User B buys low with the product.

Scenario 1: BTC price is ≥ 15,000 USDT at the expiry date

As the actual BTC price is above or equal to the strike price, the product is "not exercised." User B gets 60,000 USDT back and earns 1,000 USDT as interest income from this product. However, if the BTC price soars to 25,000 USDT at the expiry date, the user will miss the opportunity to earn 15,000 USDT by buying 3 BTC at 20,000 USDT.

Scenario 2: BTC price is ＜15,000 USDT at the expiry date

As the actual BTC price is below the strike price, the product is "exercised." User B uses 60,000 USDT to buy 4 BTC at the price of 15,000 USDT, succeeding in buying low, and earns 1,000 USDT as interest income. However, if the BTC price slumps to 10,000 USDT at the expiry date, the user spends an extra 5,000 USDT for each BTC bought.

Features and Advantages of Dual Investment

From the above examples, we can see the following features and advantages:

1. You can earn fixed interest income from any Dual Investment product, regardless of market conditions.

2. If the product is not exercised, you can get back your assets in the same currency type and quantity as you have deposited (like 1 BTC or 60,000 USDT in the examples). You will only earn the interest income and could miss the opportunity to buy low or sell high.

3. When the product is exercised, you will get more returns, which are realized by buying low or selling high within the range you set up. However, you could also miss the chance for a higher profit.

4. The potential losses or missed opportunities mentioned in our examples could happen, which is similar to the risk of market fluctuations you will face when holding coins. So Dual Investment is a better option than simply holding coins.

5. No one can accurately predict the market. Dual Investment is suitable for investors who can only make rough predictions. Those with a more precise forecast can choose to trade futures.

6. Conceptually, Dual Investment is non-principal protected. However, compared with pure derivative products, it can be considered capital-guaranteed, although it cannot eliminate the risk of market fluctuations.

7.Dual Investment products offer a redemption price for users to manage risks when the market price reaches the strike price but the price fluctuation is beyond their expectations. This ensures that even if a product reaches its strike price, the conversion of underlying assets will not be executed, and the original assets will be returned to users.

Risk Reminder: Dual investment is not principal protected with its risks primarily from market fluctuations. In highly volatile market conditions, it is challenging for users to predict the market price of underlying assets, such as BTC and ETH at expiration, as well as the difference between the market price and the strike price. This makes it difficult to finalize the settlement cryptocurrency. Please thoroughly understand the features of this product before purchases to ensure that you are aware of the risks involved.

HTX remains committed to providing you with better products and services.