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All About Gate.io Daily Smile Products
All About Gate.io Daily Smile Products
2022-12-09 10:01:47 UTC
20639 Read
What's Daily Smile?
Gate.io Daily Smile is a capital-protected structured product with a yield curve composed of fixed intervals and stable income. In essence, it belongs to an option derivative, allowing users to obtain extra high returns on the premise of guaranteed returns.Moreover, Daily Smile products also use the Gate.io price observation mechanism to observe the market price at a fixed time every day. Compared with traditional interval products, it stands out in the following aspects:
Daily Smile determines product parameters such as the underlying currency, subscription limit, lock-up period, and profit range according to market fluctuations, allowing participants to obtain additional high-risk returns on the premise of ensuring guaranteed returns. However, the level of APR depends on whether the price of the target currency has moved out of (risen above / fallen below) the price range during the investment period. If it has, users can obtain a high APR; otherwise, users can still get a guaranteed return.
Gate.io structured products include Daily SharkFin, Bullish SharkFin, Bearish SharkFin, and Daily Smile.
How can Daily Smile bring you a return?
Users of Daily Smile can earn profits in two ways:1. During the observation period, if the price of the target asset stays within the price range (that is, hit the range), the user can obtain a high APR (Guaranteed APR < APR within the price range).
2. During the observation period, if the price of the target asset moves the upper/lower limit of the price range (that is, knock out the range), the user will obtain a guaranteed return.
How to calculate your returns? (Examples)
Take a Daily Smile product with a hit-the-range APR of 6.5% and a knockout-the-range APR of 0.7% as an example. The lockup period is 7 days, the BTC/USDT perpetual contract is the benchmark, and the price range is [$16,000-$17,500].
Day 1: If the reference settlement price of the day is $17,008 ($16,000 < $20,008 < $17,500), then the price hits the range. The APR will be 6.5%.
Return = Principal * 6.5%/365
Day 2: If the daily reference settlement price of that day is $15,008 ($15,008 < $16,000 ), then the price hits the range. The APR will be 0.7%.
Return = principal * 0.7%/365
...
Returns are calculated and accumulated in this way for 7 days and will be released together on the lockup expiration date.
Day 1: If the reference settlement price of the day is $17,008 ($16,000 < $20,008 < $17,500), then the price hits the range. The APR will be 6.5%.
Return = Principal * 6.5%/365
Day 2: If the daily reference settlement price of that day is $15,008 ($15,008 < $16,000 ), then the price hits the range. The APR will be 0.7%.
Return = principal * 0.7%/365
...
Returns are calculated and accumulated in this way for 7 days and will be released together on the lockup expiration date.
FAQ
1. Risks of Daily Smile
All structured products currently listed on Gate.io allow users to obtain a floating guaranteed return, with no risk of principal loss. Users can obtain a guaranteed income and also have the opportunity to obtain a high return.
In addition, Gate.io's structured products are under the price observation mechanism, which can help increase the possibility for users to enjoy a high return.
2. Will the determined price range be adjusted during this period?
If the market fluctuates drastically before the observation period starts, we will adjust the price range to maximize investors’ returns. During the real observation period, we will no longer make price adjustments.
3. If the price during the period has once fallen below the lower limit of the price range and risen above the upper limit of the price range, how to calculate the return?
In this case, the return will be calculated as follows:
If the price at the observation time point has moved out of the price range, the return is calculated based on guaranteed APR; otherwise, the return will be calculated based on a high APR.
Gate.io reserves the final right to interpret the product.
*If you want to learn more about Daily Smile, you can go to Gate Learn to read related articles:
What is an Option?
