MEXC Dual Investment FAQ: Understanding Returns, Asset Conversion, and Risks
Key Takeaways:
- Dual Investment is a non-principal-protected structured investment product that links returns to asset conversion conditions.
- It offers two directions: Buy Low and Sell High. The asset you receive depends on how the settlement price compares with the target price.
- Whether or not the target price is reached, users receive the asset corresponding to their principal plus interest.
- The main risks include price fluctuations after asset conversion and funds being locked during the investment term.
1. What type of product is Dual Investment?
Dual Investment is a non-principal-protected structured investment product offered by MEXC, with interest that varies before subscription. Users can choose an asset, target price, and investment term based on their investment plans. The product allows them to buy or sell crypto assets at a preset target price on a specified settlement date while earning interest during the investment term.
At its core, Dual Investment links returns to asset conversion conditions. The asset users ultimately receive depends on the price comparison at settlement. MEXC supports Dual Investment with a range of pairs involving Bitcoin, Ether, and tokenized gold, allowing users to allocate funds according to their risk preferences.
2. What are the target price and settlement date in Dual Investment?
The target price is the agreed buying or selling price between the user and the platform. It is the key reference for determining the settlement outcome. The settlement date is the date the product matures, and the investment term runs from successful subscription to settlement.
Settlement takes place at 00:00 (UTC) on the settlement date. The settlement price is the average price on the MEXC Spot market over the 30 minutes preceding that time. At settlement, the system compares the settlement price with the target price and automatically settles the assets according to the product rules. No manual action is required.
3. What do buy low and sell high mean in Dual Investment?
With Buy Low, users subscribe with stablecoins such as USDT, aiming to buy crypto assets such as Bitcoin at an acceptable target price. With Sell High, users subscribe with assets such as Bitcoin, aiming to sell them for stablecoins at the target price. These two options serve opposite objectives: building a position at a lower price or taking profits at a higher price.
4. Which asset will I receive at settlement?
Buy Low: If the settlement price is at or below the target price, users receive the target asset at the target price. If the settlement price is above the target price, users receive their stablecoin principal plus interest.
Sell High: If the settlement price is at or above the target price, the assets are converted into stablecoins at the target price. If the settlement price is below the target price, users receive their principal plus interest in the original asset.
Interest is paid in either outcome.
5. What are the risks of Dual Investment?
Dual Investment involves three main risks:
1) After a Buy Low conversion, the asset's price may continue to fall, resulting in an unrealized loss.
2) After a Sell High conversion, users may miss out on further price gains.
3) Funds are locked during the investment term and cannot be withdrawn at any time.
Importantly, Dual Investment does not guarantee that the principal will be returned in the original asset. It is a non-principal-protected product.
6. Is the estimated APR displayed on the page the same as the rate for my order?
The page displays a real-time estimated annual percentage rate (APR), which fluctuates with market conditions. The actual rate for an order is locked in when the order is successfully placed. Once locked in, it no longer changes with the market, and the order is settled at maturity using that rate.
7. Can I redeem early or cancel a Dual Investment order?
Generally, no. Once an order is confirmed, it enters a lock-up period and usually cannot be redeemed or canceled before maturity. Users should therefore carefully assess their liquidity needs before subscribing to avoid disrupting their day-to-day financial arrangements.
8. Who is Dual Investment suitable for?
Dual Investment is suitable for users who already plan to buy or sell around a specific price and can accept both the asset conversion outcome and the lock-up period. Users who need to preserve their stablecoin principal in full, require access to their funds at any time, or cannot tolerate significant asset price fluctuations can explore other products on MEXC Earn.