The birth of a crypto-friendly president: How to use structured products to gain profits in this bull market?

The first crypto-friendly "Trump" has entered the White House, and market sentiment is soaring. The BTC price fluctuated around $68,000, quickly breaking through the $70,000 resistance level and reaching a new high. With significant volatility in the crypto market, how can investors seize the opportunity of a bull market to achieve long-term stable or even enhanced returns while effectively protecting their principal? Matrixport has deeply explored user needs and launched structured financial products suitable for various market conditions, different investor groups, and multiple investment requirements. This article will review Matrixport's structured financial products to help investors quickly identify the right financial products for themselves!

1. Shark Fin: Predict the price range of the underlying asset to gain excess returns, optimal for short-term volatile markets

"Shark Fin" is a structured financial product that offers cost protection and stable returns, aiming to enhance investors' yields during market fluctuations. Investors purchasing this product can enjoy a basic annualized return while having the opportunity to earn a high return of 100.75% annually (real-time data as of 2024-11-07, for reference only). It is suitable for low-risk preference investors who want to achieve enhanced returns.

Currently, Matrixport's Shark Fin supports investments in USDT, BTC, and ETH; it supports investment periods of 7 days, 14 days, 30 days, and 90 days.

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#### Applicable Scenarios

Shark Fin is suitable for low-risk preference users who want to achieve returns exceeding the market average. When the market experiences short-term fluctuations, investors looking to enhance their yields during volatility can choose Shark Fin to determine the price range of the asset. If the Shark Fin product matures with the underlying asset's price within the specified range, users will gain enhanced returns; if it exceeds the price range, users will receive a guaranteed return. It is suitable for investors with low risk tolerance who want to achieve enhanced returns during volatility.

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#### Example

Assume A believes that the price of BTC will likely fluctuate between $77,500 and $100,100 in the coming days but will stabilize at some price within that range. A uses 10,000 USDT to purchase the USDT-BTC bullish Shark Fin product.

The product matures in 7 days, with an annualized rate of 1% - 99.43%, and the linked price is $77,500 - $100,100.

When the product matures, user A may face the following situations:

• If the settlement price at maturity is $100,000, the final return = 189.92 USDT (10,000 * 99.03% * 7 / 365). When $77,500 < settlement price < $100,100, the investor will receive an APY of 1% - 99.43%. The closer the settlement price is to $100,100 (but not equal to $100,100), the higher the return.

• If the settlement price at maturity is ≤ $77,500 or ≥ $100,100, user A will receive a basic APY of 1%, and the final return = 1.91 USDT (10,000 * 1% * 7 / 365).

2. Trend Smart Earnings: Predict market trends to gain enhanced returns, greater profits in one-sided markets

Trend Smart Earnings is a cost protection structured financial product. Users do not need to accurately predict market conditions; they only need to guess the direction to earn high returns, and even if they guess wrong, they can still receive guaranteed returns. Currently, Matrixport's Trend Smart Earnings supports investments in USDT, BTC, and ETH; it supports investment periods of 7 days, 14 days, 30 days, and 90 days.

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#### Applicable Scenarios

Trend Smart Earnings has an advantage in one-sided markets because it eliminates the one-sided knockout mechanism. Even if the market price continues to rise or fall, returns will not decrease due to knockouts. This design allows Trend Smart Earnings to perform better in strong one-sided market environments, flexibly capturing trends, especially suitable for investors with clear expectations of future trends.

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#### Example

Assume A believes that the price of BTC will continue to rise in the coming days and that the rising range will be between $75,500 and $92,500. A uses 10,000 USDT to subscribe to the BTC bullish Trend Smart Earnings product, which matures in 7 days with an annualized rate of 0.8% - 63.3%, and the price range is $75,500 - $92,500.

When the product matures, user A may face the following situations:

• If the settlement price at maturity is $100,000, exceeding $92,500, regardless of the actual price, the subscriber will enjoy the highest APY of 63.3%, with a final return = 121.37 USDT (10,000 * 63.3% * 7 / 365);

• If the settlement price at maturity is $80,000, within $75,500 - $92,500, A will enjoy enhanced APY based on the proportion of the difference between the BTC settlement price and $75,500, with a final return = 33.25 USDT (10,000 * 17.34% * 7 / 365);

• If the settlement price at maturity is $70,000, falling below $75,500, A will enjoy a guaranteed 7-day 0.8% APY return, with a final return = 1.53 USDT (10,000 * 0.8% * 7 / 365);

3. Snowball: Long-term volatile markets can continuously amplify enhanced returns

As a classic structured product, "Snowball" can capture more returns in volatile markets. The Snowball has "knock-in prices" and "knock-out prices." As the name suggests, when the Snowball product purchased by investors fluctuates between these two prices, the returns will grow like a snowball rolling in the snow.

Matrixport's "Snowball" products currently offer USDT bullish snowballs, BTC bullish snowballs, BTC bearish snowballs, ETH bullish snowballs, and ETH bearish snowballs; investment periods support 7 days, 14 days, 30 days, 90 days, and 180 days.

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#### Applicable Scenarios

Snowball is suitable for investors with a certain risk tolerance and clear expectations of market trends. When the market continues to fluctuate, Snowball can capture more returns. It is worth noting that when the underlying asset breaks through the protection price, a currency conversion will occur, allowing investors to flexibly settle based on actual conditions to avoid asset losses.

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#### Example

Assume A believes that the price of BTC will fluctuate in the future, with a certain probability of rising during the fluctuations. A uses 10,000 USDT to subscribe to the BTC bullish Snowball product, which matures in 7 days, with an annualized rate of 92.59%, the current BTC price is $75,000, the take-profit price is $76,500, and the protection price is $71,250.

When the product matures, user A may face the following situations:

• If the settlement price at maturity is $70,000, with $71,250 < settlement price < $76,500, no knock-in or knock-out events occur, the product matures smoothly and settles in USDT, A can obtain a return = 177.56 USDT (10,000 * 92.59% * 7 / 365).

• If during the product's operation, on the 3rd day, the observed price of BTC is $77,000, and the observed price ≥ $76,500, a knock-out event is triggered, and the product will settle in coin terms, A can obtain a return = 76.1 USDT (10,000 * 92.59% * 3 / 365).

• If during the product's operation, on the 3rd day, the observed price of BTC is $70,000, and the observed price ≤ $71,250, a knock-in event is triggered. The investor's settlement asset will undergo currency conversion and settle as BTC at the price of $70,000, with A receiving a return = 0.104 BTC [ (10,000 * (1 + 92.59% * 3 / 365)) / 70,000 ].

4. Dual Currency: Buy low and sell high, a tool for short-term volatile markets

"Dual Currency Investment" involves two currencies, with investment directions divided into "sell high" and "buy low." Generally, choosing the "sell high" direction requires purchasing the corresponding currency, while choosing "buy low" requires using USDT/USDC for purchase. However, there are exceptions, such as Matrixport's "ETH/BTC" product, where choosing "sell high" requires investing ETH, and choosing "buy low" requires investing BTC.

When used properly, dual currency can meet users' various needs such as taking profits, bottom fishing, and accumulating coins. "Dual Currency Investment" is a "non-principal protected but fixed yield" financial product, with the yield clearly defined and fixed at the time of purchase, but the settlement currency is uncertain. At maturity, the settlement currency depends on the comparison between the settlement price and the linked price.

Matrixport's "Dual Currency Investment" products support 12 assets including BTC, ETH, ARB, BCH, BNB, ORDI, OP, etc.; the investment period is broad, supporting a wide range of investment cycles from 0.1 to 287 days.

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#### Applicable Scenarios

Choosing to sell high is equivalent to selling a call option, while choosing to buy low is equivalent to selling a put option. Dual currency investment is suitable for investors with clear expectations of the current market trend to earn additional returns in coin terms, and they can buy or sell once the linked price is reached without any trading fees.

For example, if an investor believes that the market trend will be volatile, choosing a suitable dual currency product with prices fluctuating between upper and lower thresholds can yield high returns; if an investor believes that the future will enter a short-term decline followed by a rebound, choosing a suitable "buy low" product can not only allow them to bottom fish at a lower price but also earn APY returns; if a user believes that the future trend will be an upward correction, choosing a "sell high" product may provide an opportunity for high-point profit-taking.

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#### Example

Assume user A believes that the price of BTC may rise slightly in the short term and wants to use dual currency investment to earn additional returns in coin terms while selling BTC at a high point, but A is unwilling to pay any trading fees. A can use 1 BTC to subscribe to the BTC dual currency product,

The product matures in 15 days, with an annualized rate of 96%, and the linked price is $73,000.

When the product matures, user A may face the following situations:

• If the settlement price at maturity is $100,000, and the settlement price ≥ $73,000, the dual currency will sell the invested BTC principal and the BTC gains at the price of $73,000, settling the returns in USDT, A's final return = 2,880 USDT (1 * 73,000 * 96% * 15 / 365).

• If the settlement price at maturity is $70,000, and the settlement price < $73,000, the dual currency will settle the returns in coin terms, A's final return = 1.039 BTC [ 1 * (1 + 96% * 15 / 365) ].

5. Seagull: Earn returns even in unclear markets

Similar to the principle of traditional financial seagull options, the Seagull is composed of three ordinary option strategies with the same expiration date. In simple terms, the Seagull is a "special structure" dual currency product, with a risk structure similar to dual currency but solving the pain point of traditional dual currency products easily missing returns in one-sided markets, allowing for amplified returns in one-sided markets.

Matrixport's "Seagull" products support BTC, ETH, and USDT; the period span can meet different customer needs.

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#### Applicable Scenarios

The use scenarios for Seagull are relatively broad, whether in volatile markets, sideways markets, or one-sided upward trends. When users are uncertain about the future price direction, they can try Seagull to lock in maturity returns, as long as the price does not touch the conversion price at maturity, asset conversion will not occur. If a sustained one-sided market occurs in the future, users can gain high enhanced returns.

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#### Example

Assume A believes that the price of BTC will likely fluctuate upward in the near future and wants to earn additional returns in coin terms. A uses 10,000 USDT to subscribe to the BTC bullish Seagull product. The product matures in 15 days, with an annualized return rate of 43.98% - 100.24%, a conversion price of $73,000, a benchmark price of $74,000, and a maximum price of $76,000.

When the product matures, user A may face the following situations:

• If the settlement price at maturity is $100,000, and the settlement price ≥ $76,000, they will receive the highest APY of 100.24%, A's final return = 411.94 USDT (10,000 * 100.24% * 15 / 365).

• If the settlement price at maturity is $75,000, when $74,000 < settlement price < $76,000, they will receive returns between the basic 43.98% APY and the maximum 100.24% APY, A's final return = 296.25 USDT.

• If the settlement price at maturity is $73,500, when $73,000 < settlement price ≤ $74,000, they will receive the basic 43.98% APY, A's final return = 180.73 USDT (10,000 * 43.98% * 15 / 365).

• If the settlement price at maturity is $70,000, and the settlement price ≤ $73,000, the user will receive an annualized return of 43.98% and buy BTC at the price of $73,000, ultimately A will receive = 0.1394 BTC [ 10,000 * (1 + 43.98% * 15 / 365) ] / 73,000.

6. Installment Purchase: Buy now, pay later, locking in crypto assets with installment payments

"Installment Purchase" is a crypto derivative of the traditional financial product "installment payment warrants," exclusively launched by Matrixport in the industry. Investors can lock in the potential returns of crypto assets in advance through installment payments, improving capital utilization. Currently, the installment purchase supports up to ten times leverage and avoids liquidation without additional margin.

Matrixport's "Installment Purchase" products support BTC, ETH, and USDT, with a wide range of investment periods from 0 to 365 days.

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#### Applicable Scenarios

Installment purchase is suitable for investors who wish to maintain long-term exposure to cryptocurrencies like BTC. Investors can purchase BTC and other cryptocurrencies through a relatively low down payment and enjoy potential appreciation returns from holding the underlying assets in advance while maintaining long-term market exposure. At maturity, investors can choose to pay the final payment and physically deliver the assets to obtain BTC and other cryptocurrencies; or they can choose not to pay the final payment, settling in cash or automatically reinvesting.

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#### Return Mechanism

Assume user A wants to purchase BTC but is concerned about significant price fluctuations causing capital losses. The user can use installment purchase to lock in the future returns of a certain amount of BTC by paying a certain percentage of the down payment.

If the real-time price of BTC is $75,961, A purchases an investment period of 84 days, with a down payment of $14,941 and a final payment of $68,000, with a maturity date of January 31, 2025.

After the product's maturity date, user A can choose the following settlement methods. At the maturity date, they can choose to "pay" or "not pay":

1. Pay the final payment of $68,000 and receive 1 BTC. Since the down payment and final payment amounts are fixed, the investor will gain returns from the price differences of BTC during the holding period;

2. Not pay the final payment of $68,000 and automatically reinvest. If the investor does not want to pay the final payment immediately, they can choose to use the current settlement price as the down payment for the next installment purchase product, maintaining market exposure through automatic reinvestment.

3. Not pay the final payment of $68,000 and settle the installment purchase product based on the cash value of 1 BTC at maturity.

Cash value settlement formula:

Cash value = Max { 0, [ (settlement price - final payment) / settlement price] * number of purchases }

Note: The cash value is at least 0, meaning that even if the linked asset price drops significantly, the investor's maximum loss is only the down payment, and there will be no negative cash value.

The above content does not constitute investment advice, sales offers, or purchase offers to residents of the Hong Kong Special Administrative Region, the United States, Singapore, or other countries or regions where such offers or invitations may be prohibited by law. Digital asset trading may carry significant risks and volatility. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions made based on the information provided herein.