Recently, MatrixPort officially launched a structured product, seagull.
This article will further demonstrate the product principles and usage scenarios of Seagull to users by comparing the differences between Seagull and other structured products, helping users to better use structured products to maximize their returns.
What is Seagull
Seagull is an innovative structured product based on option combinations, similar to the Seagull option principle of traditional finance, and is composed of three ordinary option strategies with the same expiration date. In layman's terms, Seagull is a dual-currency product with a "special structure" and has a similar risk structure to dual-currency, but in terms of income structure, Seagull solves the pain point of traditional dual-currency products that are prone to missing out on income in unilateral market conditions, and can amplify income in unilateral market conditions.
Comparison between Seagull and other structured products
In order to help users understand Seagull products more intuitively, we have made a comprehensive comparison of Matrixport's current structured products in terms of applicable market conditions, product principles, estimated returns, etc. for users' reference.
Overall, Seagull's investment cycle is more flexible, with more usage scenarios and lower risks, and under appropriate circumstances, Seagull can capture more returns.
Seagull's profit mechanism and usage scenarios
Haiou supports both bullish and bearish direction options. Users can choose the appropriate direction and product cycle based on their own judgment of the market. The final repayment amount and currency depend on the comparison results of the maturity price with the benchmark price, conversion price, and highest yield price.
Let's take the bullish Seagull product as an example to briefly analyze the repayment mechanism of Matrixport Seagull products. Assume that we use USDT to buy a BTC bullish product, and the BTC price is X after the product expires. For ease of understanding, we name the three key price points in the Seagull product as A, B, and C: conversion price, base price, and highest price.
When X >= C, you will get the highest APY, and the return = principal * (1 + maximum APY * product term / 365) USDT
When B < X < C, you will get the interval APY between the basic APY and the highest APY, and the return = principal * (1 + interval APY * product term / 365) USDT
When A < X < = B, you will get the basic APY, and the return = principal * (1 + basic APY * product term / 365) USDT
When X<=A, the currency standard will be used for settlement and the basic APY will be obtained. The return = principal * (1 + basic APY * product term / 365) / A BTC
It can be seen that Seagull's unique multi-level income structure not only guarantees the basic APY, but also can capture more income under one-sided market conditions. At the same time, if the trend judgment is wrong and a change occurs, the basic APY can also hedge the potential losses caused by currency price fluctuations.
Of course, Seagull is not omnipotent. The principle of Seagull's products also determines that there are certain risks. For example, in the case of drastic market fluctuations, Seagull's returns may be lower than expected, or in extreme market conditions, Seagull's profit cap will cause users to be unable to capture all profits, and the limited downside protection cannot fully cover user losses caused by price fluctuations.
In a volatile market environment, structured financial products have become the first choice for many users. Matrixport's Seagull products provide users with a new way to deal with unilateral market fluctuations. Whether bullish or bearish, users can flexibly respond to market changes through Seagull products and obtain layered returns in different price ranges.
Disclaimer: The market is risky and investment should be cautious. This article does not constitute investment advice. Digital asset trading can be extremely risky and unstable. Investment decisions should be made after carefully considering personal circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.