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Shark Fin Structured Products: Range-Based Yield and Knockout Mechanics

Article Bitget Academy
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Summary

The document explains Shark Fin, a fixed-term crypto structured product that combines a stated base yield with a higher possible return tied to an asset’s price behavior. If the settlement price remains within a specified range throughout the subscription period, the final annualized rate is calculated by linear interpolation between minimum and maximum rates based on the settlement price. If the price crosses either boundary, the product pays only its guaranteed rate. It provides example BTC/USDT terms and calculations to illustrate both outcomes.

The product is locked until maturity, and the examples show how a short subscription period translates the annualized rate into a modest cash return. The document says the principal guarantee refers to the initial crypto amount, so it does not protect against that crypto losing value relative to fiat currency. Returns also depend on the product’s specified terms, which may change before the interest period begins; the explanation is product-specific and promotional in tone.

Key ideas

  • The product offers a guaranteed base rate and a potentially higher rate when price stays within a preset range.
  • The in-range rate is calculated by interpolating between minimum and maximum rates using the settlement price.
  • A breach of either price boundary triggers the lower guaranteed rate.
  • Funds are locked until maturity, so early redemption is unavailable.
  • The stated principal protection does not cover a decline in the crypto asset’s fiat value.

Tags

CryptoOptionsVolatilityRisk management

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.