What is Shark Fin at HTX Earn?

Shark Fin, the latest addition to HTX Earn's financial product lineup, derives its name from its return curve, which resembles a shark fin. HTX Earn's Shark Fin is an evolution of options products and its pattern can be either bullish or bearish. It features fixed settlement dates, no principal loss, floating APYs, and basic returns. The accuracy of your predictions about future market trends will determine your returns from Shark Fin.

Features and Advantages of Shark Fin

1. No principal loss.

2. Basic returns.

3. Enable investors to seek higher returns without taking on additional risk on top of the basic returns.

4. Short investment cycle without affecting fund liquidity.

5. Combine advantages of American options, European options, and touch options, offering more flexibility in gameplay.

Investors can pursue yields based on market fluctuations alongside basic returns, enhancing the attractiveness of the Shark Fin product.

Learn Shark Fin Through Examples

1. Bullish Shark Fin

Let's consider a scenario where you invest 1,000 USDT in Bullish Shark Fin with a 7-day term. The investment target is BTC, offering a potential profit range of 6% to 36% and a price range of $30,000 to $33,000.

Case 1 : If the highest index price during the interest calculation period or settlement period exceeds the upper limit of the price range.

If the highest index price is $34,000, which is higher than the upper limit of the price range of $33,000, your APY will be 6%.

Returns = 1,000 USDT x 6% x 7/365 = 1.150 USDT

Case 2 : The index price remains consistently lower than or equal to the upper limit of the price range throughout the interest calculation period, and the index price expires within the price range.

If the index price remains consistently lower than $33,000 before the settlement, and the index price expires at $31,000, which is within the range of $30,000 and $33,000, your APY will be 16%.

APY = 6% + (31,000 - 30,000) / (33,000 - 30,000) × (36% - 6%) = 16%

Returns = 1,000 USDT x 16% x 7/365 = 3.068 USDT

Case 3: The index price remains consistently lower than or equal to the upper limit of the price range throughout the interest calculation period, and the index price expires below the price range.

If the index price remains consistently lower than $33,000 before the settlement, but the index price expires at $29,000, which is lower than $30,000, your APY will be 6%.

Returns = 1,000 USDT x 6% x 7/365 = 1.150 USDT

2. Bearish Shark Fin

Let's consider a scenario where you invest 1,000 USDT in Bearish Shark Fin with a 7-day term. The investment target is BTC, offering a potential profit range of 6% to 36% and a price range of $30,000 to $33,000.

Case 1: The lowest index price during the interest calculation period is below the lower limit of the price range.

If the lowest index price is $29,000, which is below the lower limit of the price range of $30,000, your APY will be 6%.

Returns = 1,000 USDT x 6% x 7/365 = 1.150 USDT

Case 2: The index price remains consistently higher than or equal to the lower limit of the price range throughout the interest calculation period, and the index price expires within the price range.

If the index price remains consistently higher than $30,000 before the settlement, and the index price expires at $31,000, which is within the range of $30,000 and $33,000, your APY will be 26%.

APY = 36% - (31,000 - 30,000) / (33,000 - 30,000) × (36% - 6%) = 26%

Returns = 1,000 USDT x 26% x 7/365 = 4.986 USDT

Case 3: The index price remains consistently higher than or equal to the lower limit of the price range throughout the interest calculation period, and the index price expires higher than the price range.

If the index price remains consistently higher than $30,000 before the settlement, but the index price expires at $34,000, which is higher than $33,000, your APY will be 6%.

Returns = 1,000 USDT x 6% x 7/365 = 1.150 USDT

Analyzing the provided examples reveals a clear trend: for the Bullish Shark Fin, if it exceeds the upper limit of the price range, you will obtain the basic returns. Conversely, for Bearish Shark Fin, if it drops below the lower limit of the price range, you will likewise only receive the basic returns.

To optimize your returns in Shark Fin, it is essential to make accurate predictions on the future market trends. When investing in Bullish Shark Fin, if the index price expires below the price range, you'll receive only the basic returns. If your prediction is highly accurate and the index price surges beyond the upper limit of the price range, you will still yield basic returns. Only when the index price expires within the price range can you reap the maximum returns. Likewise, the principle also applies to Bearish Shark Fin.

Target Investors

1. Prudent investors: Shark Fin is an ideal choice for prudent investors who prioritize stability in their investments, as it comes with no risk of principal loss and offers guaranteed basic returns.

2. Investors with moderate risk tolerance: If you aim for higher returns while maintaining investment stability, Shark Fin is an excellent choice.

3. Beginners: For novice investors, Shark Fin presents the advantage of guaranteed basic returns, coupled with the opportunity to engage with potential yields through market fluctuations.

4. Entry-level options traders: Shark Fin is essentially an options product. It offers a practical way for investors to understand the mechanics and strategies of options trading before venturing into it. By investing in Shark Fin, investors can get a firsthand experience of how options work.