Structured Financing gathers hedging and fundraising to meet various capital needs. It has the following features:<\/p>\n\n\n\n
For example, a user chooses a structured financing product with a 70% Loan-to-Value Ratio, 120% Profit Sharing Level, 30% Profit Sharing Ratio (Users keep 70% of the profit), 4% APR and 3 days duration. Scenario 1:<\/strong> At settlement, the price is still $20,000, the borrower will pay 46 USDT.<\/p> Scenario 2:<\/strong> At settlement, the price is greater than profit sharing price ($24,000), such as $24,500. The borrower will pay 46 USDT and extra 1,500 USDT. Profit Sharing: (24,500-24,000) * 10 * 30% = 1,500)<\/p> Scenario 3: <\/strong>At settlement, the price is between profit sharing price ($24,000) and downside protection price ($14,000), such as $15,000, the borrower will pay 46 USDT.<\/p> Scenario 4:<\/strong> At settlement, the price is below downside protection price ($14,000), such as $13,000, the borrower will pay 46 USDT and receive 10,000 USDT as downside compensation from the lender. No margin call is required in the entire process.<\/p><\/blockquote>\n\n\n\n Holding BTC and need cash flow in the current state. One can use their BTC holdings as collateral to borrow 70% worth of USDT. Convert all USDT into ETH, use ETH as collateral to raise 70% worth of it in USDT to buy ETH at the dip. Convert all USDT into Dot. Then use DOT as collateral to receive 70% of its value in USDT and use it to buy DOT on the dip. Convert all USDT into BTC. Then use BTC as collateral to receive 70% of its value in USDT and wait to buy Altcoin on the dip. Q: The settlement time is always 16:00 (UTC+8) in the system. Can I determine my own settlement time?<\/strong> What is Structured Loan? Structured Financing gathers h …<\/p>\n
When the term starts, If the price of BTC is $20,000, the profit-sharing price would be $24,000, downside protection price would be $14,000. The user can raise $140,000 using 10 BTC as collateral. There are 4 scenarios with different prices at settlement:<\/strong><\/p>\n\n\n\nHow to Use Structured Loan<\/h2>\n\n\n\n
Generate Cash Flow<\/h3>\n\n\n\n
Pros:<\/strong> Avoid selling BTC at a low price; keep the profit of price rising in the future. If the price of BTC keeps dropping, even dropping out of the downside protection level, no margin call is required.<\/p>\n\n\n\nDip-Buying + Leveraging + Downside Compensation<\/h3>\n\n\n\n
Scenario 1\uff5cHolding USDT, would like to buy BTC or ETH on the dip<\/h4>\n\n\n\n
Pros: <\/strong>Leverage trading BTC\/ETH with downside compensation<\/p>\n\n\n\nScenario 2\uff5cHolding USDT, would like to buy Altcoin on the dip<\/h4>\n\n\n\n
Pros: <\/strong>Leverage trading Altcoin with downside compensation<\/p>\n\n\n\nScenario 3\uff5cHolding BTC, Buy Altcoin on the dip<\/h4>\n\n\n\n
Pros:<\/strong> Users can buy Altcoin with no need to sell their BTC. They can earn extra price increases with downside compensation.<\/p>\n\n\n\nFAQ<\/h2>\n\n\n\n
A: You cannot determine your own settlement time. Structured finance product always settles at 16:00 (UTC+8).<\/p>\n","protected":false},"excerpt":{"rendered":"