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What Is Binance Dual Investment?

What Is Binance Dual Investment?

2020-11-27 05:34
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Last updated: 12 July 2024

Dual Investment is a high-yield structured financial product that allows buying or selling cryptocurrency at a desired price and date in the future while earning rewards regardless of market direction.

1. Benefits of using Dual Investment

  • Buy Low or Sell High: Purchase crypto at a lower price or sell it at a higher price.
  • High Rewards: Earn high passive income regardless of market direction.
  • Wide Selection: Choose from various assets and customize the target date and price.
  • No Trading Fees: Enjoy zero trading fees when the target is reached and the “Buy Low” or “Sell High” product is filled.

2. When should I use Dual Investment?

Dual investment is suitable for both advanced traders and HODLers who wants to earn some extra rewards, there are many different reasons why you may decide to use Dual Investment. Some of the most common scenarios include:
  • Take profit: Sell your crypto holdings at a Target Price to realize investment gains while earning from additional rewards.
  • Buy the dips: Purchase crypto at a Target Price when the market is down, benefiting from extra rewards.
  • Grow more crypto: Hold crypto and earn additional returns simultaneously.
  • Grow more stablecoin: Hold stablecoins and earn additional returns.

3. How do “Buy Low” and “Sell High” products work?

There are two types of Dual Investment products: “Buy Low” and “Sell High”.
1. Buy Low
Buy Low gives you a chance to buy crypto at the target price on a future date while earning rewards regardless of the market direction.
Example:
  • Current BTC price: $60,000
  • Target Price: $50,000 (to buy BTC with USDT in 2 weeks).
  • Scenarios
  • Target Price is not reached (Settlement Price ≥ Target Price): You won’t buy BTC and will receive your subscription amount and rewards in USDT.
  • Target Price is reached (Settlement Price ≤ Target Price): You will buy BTC at $50,000 using your subscription amount and rewards.
2. Sell High
Sell High gives you a chance to sell crypto at the target price on a future date while earning rewards regardless of the market direction.
Example:
  • Current BTC price: $60,000
  • Target Price: $80,000 (to sell BTC into USDT in 2 weeks).
  • Scenarios
  • Target Price is reached (Settlement Price ≥ the Target Price): You will sell your BTC, including the subscription amount and rewards, at $80,000 into USDT.
  • Target Price is not reached (Settlement Price ≤ Target Price): You won’t sell BTC and will receive your subscription amount and rewards in BTC.

4. The risks of Dual Investment

Dual Investment, while versatile and potentially profitable, requires an understanding of the risks involved:
  • Market Price Volatility Risk: The market could move in an unforeseen direction, leading to missed opportunities. If the price moves further away from the Target Price, you end up losing the opportunity to buy or sell at a more favorable price.
  • Less Flexibility: Once subscribed, your funds will be locked up and you won’t be able to access your funds until the Settlement Date.
Important Note: Dual Investment is not a risk-free investment. Please read through the product terms carefully before making your investment. Binance is not liable for any losses incurred from price fluctuations.

How to subscribe to a Dual Investment product?

1. Log in to your Binance account and click [Earn] - [High Yield] - [Dual Investment].
It defaults to Beginner Mode, which is tailored for new Dual Investment users. This mode offers a step-by-step guide to assist you throughout the Dual Investment subscription process. You can enable or disable it by toggling the button next to [Beginner Mode].
2. Search for the crypto you want to invest in. You’ll find the APY for the asset and its current market price. Choose and click on the asset to get started.
3. Select either the [Sell High] or [Buy Low] product. Click the edit button next to the target price, and select a subscription. Then click [Next Step].
4. Enter the amount you want to invest and click [Next Step].
5. You’ll see the winning scenarios, and click [Checkbox] next to Case 1 and Case 2 to see the details of each scenario. Click [Subscribe] - [Confirm].
6. Read the terms of use carefully. Check the box next to [I have read and agreed to the above acknowledgements], and click [Confirm].
7. You’ll see another pop-up reminder on APR. Please note that once you subscribe, you cannot edit or cancel. Click [Confirm].
8. You have successfully subscribed to a Dual Investment product. To view your subscription, go to [Orders] - [Earn History] - [Dual Investment].

5. What is Auto-Compound?

The Auto-Compound feature automatically re-subscribes your position, setting a new Settlement Date based on the next available date from the current one.
As long as the Auto-Compound feature is enabled, your Dual Investment plan will automatically re-subscribe on the Settlement Date. You can enable or disable the Auto-Compound plan via the Earn Wallet 30 minutes before the Settlement Date.
To enable the feature, toggle on the button next to [Auto-Compound] when setting up your plan. Then choose either the [Basic Plan] or the [Advanced Plan].

6. How does Auto-Compound work?

You can select between two types of Auto-Compound plans:
1. Basic Plan
  • If the Target Price is reached, Auto-Compound will stop. The system will close the position and distribute the rewards.
  • If the Target Price is not reached, Auto-Compound will continue. The system will automatically subscribe to a new position with settlement occurring on the next available Settlement Date until the Target Price is reached.
2. Advanced Plan
  • If the Target Price is reached, the system will automatically subscribe to a new position with settlement occurring on the next available Settlement Date in the opposite direction. For example, you subscribed to a Sell High product and the Target Price is reached. Auto-Compound will open a new Buy Low position for you.
  • If the Target Price is not reached, the system will automatically subscribe to a new position with settlement occurring on the next available Settlement Date in the same direction.
For example, you subscribed to a Sell High product and the Target Price is not reached. Auto-Compound will open a new Sell High position for you.
Please Note: We will auto-compound based on the Market Price at your settlement time and choose a new Target Price based on the current Market Price within the available instruments.
For example:
If you’re using the Basic Plan of Auto-Compound and the Buy Low Target Price is not reached, the system will set a new Target Price up to 15% away from the current Market Price. Suppose the current Market Price is $20,000 for BTC, the new Target Price will be 15% lower at $17,000.

1. What is the Beginner Mode in Dual Investment?

Beginner Mode is designed for new Dual Investment users. It provides a step-by-step guide to help you through the Dual Investment subscription process.
Note: You can turn either on or off by toggling the button next to the [Beginner Guide].

2. Are Target Price, Settlement Date and APY fixed?

Once the subscription is completed, your Target Price, Settlement Date, and APY will be fixed. You are unable to revise these terms.
You can review your Target Price, Settlement Date, and APY from [Earn Wallet] and [Earn History].

3. What are “Subscription Amount”, “Target Price”, “Settlement Date”, “Deposit Currency”, “Target Currency”, “Subscription Period”, and “Settlement Price”?

Subscription AmountThe amount deposited when subscribing to Dual Investment. This amount will be used to buy or sell crypto.
Target PriceA set price at which you want to buy or sell cryptocurrency.
Settlement Date
A set date at which you want to buy or sell cryptocurrency. You will also receive your Rewards on this date.
The Settlement for BTC, ETH, and BNB occurs every Tuesday and Friday. Other tokens are on every Friday.
Deposit CurrencyThe currency used to subscribe to a Dual Investment product.
Target CurrencyThe asset you will receive if the Target Price is reached.
Subscription Period/DurationThe number of days from the day of the subscription until the Settlement Date.
Settlement PriceThe average Market Price in the last 30 minutes before 08:00 (UTC) on the Settlement Date. The Settlement Price and Target Price determine if your investment will be converted into the Target Currency.

4. How are my rewards calculated?

Rewards = Subscription Amount * [APY% * Subscription Period (in days) / 365]
Please Note: The calculated value of APY% * Subscription Period (in days) / 365 will be rounded down to four decimal places.
The following summarizes the calculation of the total amount you will receive in different scenarios:
Buy Low- Two possible scenarios on the Settlement Date:
  • Target Price is reached:
    • (Subscription Amount + Rewards) / Target Price
  • Target Price is not reached:
    • Subscription Amount + Reward
Sell High – Two possible scenarios on the Settlement Date:
  • Target Price is reached:
    • (Subscription Amount + Rewards) * Target Price
  • Target Price is not reached:
    • Subscription Amount + Rewards
For example: You subscribe BTC Buy Low at 60,000 using 1,000 USDT and the APY is 85.3% on 2024-02-14. The settlement date is on 2024-02-16 and the Target Price is not reached.
Your Rewards= 1,000 USDT * (0.853 * 2 / 365) = 1,000 USDT * 0.0046 = 4.6USDT

5. When will I get my rewards?

Each subscribed product has a Settlement Date. We will take the average of the Market Price in the last 30 minutes before 08:00 UTC on the Settlement Date as the Settlement Price.
Your investment Rewards will be calculated on the Settlement Date at 08:00 UTC based on the Settlement Price and the Target Price. Your rewards will be distributed into your Spot Wallet within 6 hours, by 14:00 UTC.

6. Can I edit, cancel or redeem my subscription before the settlement?

Unfortunately, you cannot edit, cancel, or redeem your subscription before the settlement once you subscribe. Please read through the product terms carefully before subscribing.

On the Binance Website

Go to [Orders] - [Earn History] - [Dual Investment]. Here you can view your current subscription and redemption items.

On the Binance App

Go to [Wallets] - [Earn] and tap on the [Earn History] icon on the top right. Tap [Flexible] to change the filter to [Dual Investment]. Here you can view your current subscription and redemption items.

9. What is the cutoff time to enable/disable the Auto-Compound feature?

You can enable, disable, or edit the Auto-Compound plan 30 minutes before the Settlement Date.

On the Binance Website

Go to [Assets] - [Earn] - [Dual Investment] - [Details]. Here you can view your current subscription and edit Auto-Compound plan.

On the Binance App

Go to [Wallets] - [Earn] and tap [By Product] in the middle. Tap [Dual Investment] to check your holdings and edit the Auto-Compound plan.
If you already have an existing subscription, you can enable, disable, or edit the Auto-Compound plan via your Earn Wallet.
Disclaimer: The FAQ “What Is Binance Dual Investment” may have been translated and published in different languages. In the event of any inconsistency, misstatements, omissions, or errors appearing in any translated version, this English version shall prevail.