BigONE Discount Buy FAQ

1. What is Discount Buy?

Discount Buy is an advanced product, which provides an opportunity to buy the target asset at a price lower than the price at the time of placing the order.

If the settlement price is lower than the knock-out price, the target asset can be purchased at a price lower than the market price at the time of placing the order on the settlement date. If the settlement price is higher than the knock-out price, the principal and the interest of the additional annualized income will be obtained.

2. Why choose Discount Buy?

Discount Buy is suitable for users who want to buy coins at the bottom. In a sideways market, users have the opportunity to buy the target asset at a price lower than the market price at the time of placing the order.

3. Are there any risks in Discount Buy?

If the price of the selected token falls unilaterally, the market price of the selected token on the settlement day is lower than the purchase price, and you will miss the opportunity to obtain cryptocurrency at a better price.

If the price of the selected token is higher than the knock-out price on the settlement day, the target asset cannot be purchased at the purchase price, and the principal and additional annualized income will be returned.

4. How is the settlement calculated?

5. How to participate in Discount Buy?

If you hold USDT and want to buy BTC or ETH at a certain price, you can choose the product based on your actual needs.

Example:

User A chooses to invest 10,000 USDT to buy BTC, the current market price of BTC is 60,000 USDT
Purchase price 58,000 USDT
Knockout price 62,000 USDT
Knockout annualized yield 10%
Term: 5 days

On the settlement date:

• If the BTC settlement price is lower than the knockout price of 62,000 USDT, the user will receive BTC at a price of 58,000 USDT, that is, 10000/58000=0.1724BTC

Note: If the BTC market price is lower than the purchase price of 58,000 USDT at the time of settlement, it will also be settled at a price of 58,000 USDT, and the user will miss the opportunity to buy at a lower price.

• If the settlement price is higher than the knockout price of 62,000 USDT, the user will recover the initial investment principal and an additional annualized yield of 10% USDT. That is: 10000 10000 * 10% / 365 * 5 = 10013.6986 USDT

6. When will the principal and income be credited?

The system will use the average market price in the last 30 minutes before 16:00 (UTC 8) on the settlement day as the settlement price, and calculate your income at 16:00 (UTC 8) on the settlement day. The principal and income will be distributed to your Earn account within 6 hours.

7. What is the difference between Dual Investment and Discount Buy?

• The supported investment currencies are different

Discount Buy only supports investment in USDT while Dual Investment supports investment in multiple currencies.

• Different settlement rules
  For Dual Investment, the settlement price is lower than the purchase price (linked price), and the coin will be purchased at the purchase price (linked price).
  For Discount, if the settlement price does not exceed the knock-out price, even if it is higher than the purchase price, the coin will be purchased at the purchase price.

8. Glossary

Settlement price
The average market price in the last 30 minutes before 16:00 (UTC 8) on the settlement date.

Purchase price
If the settlement price is lower than the knock-out price, the price at which the user purchases the target asset on the settlement date.

Knock out price
The knock out price is a benchmark price that is compared with the settlement price of the cryptocurrency on the expiration date. If the settlement price is lower than the knock out price, the target asset will be purchased at the purchase price, otherwise, the USDT principal and income will be returned.

Knock out annualized yield
If the settlement price is higher than the knock-out price, the USDT principal will be returned, and an additional knock-out annualized income will be obtained.

Term
The number of days from the participation date to the settlement date.

Settlement time
16:00 (UTC 8) on the day of product settlement.