Thomas
Thomas
Aug 23 · 3 min read
Photo by Thomas Morse on Unsplash

On 18th July, Hong Kong Exchange (HKEX) launched new product — inline warrant, providing new variety and possibility of deriative product to the market.

As leading crypto deriative platform, DUO labs has also developed a similar inline warrant product based on ETH price. To meet increasing interest and demand from the DUO community, the product will launch soon.

Inline warrant is structured product, product holders can received pre-confirmed return after settlement. Return amount is determined by whether ETH/USD price is within inline outbound or not at settlement period.

Launch Time: 12pm, 2 Sep 2019 (Singapore time, GMT+8)

Website: To be announced on 2 Sep

Key Features

Min and Max price are pre-determined(e.g. based on 30 days average of ETH price volatility)

No price prediction is required for participants and profit and loss is known before participation

Return

Return is 100% when ETH price change is within price boundary

Return is -50% when ETH price change is outside price boundary

Advantage

Participants could get good return even if ETH price volatility is low

Participants have chance to get up to 100% of return

Risk

Max loss will be 50% of stake

More return and loss as stake amount increases

Note: for weekends and public holidays, settlement will be conducted in the next working day cycle.

Case Example

Within boundary

Day 1:John participated with 600 DUO at 17:00, volatility is ± 2.5%. ETH/USD price is 220 at 8pm. Thus ETH/USD min-max price range is 214.5 -225.5。

Day 2:ETH/USD price became 218 at 8am, within boundary. John’s return will be 600 x 2 =1200 DUO。1200 DUO will be credited to John during settlement period.

Outside boundary

Day 2:John participated again with 500 DUO at 16:00, volatility is ± 3%. ETH/USD price is 200 at 8pm. Thus ETH/USD min-max price range is 194–206。

Day 3:ETH/USD price became 210 at 8am, outside boundary. John’s return will be 500 x 0.5 =250 DUO。250 DUO will be credited to John during settlement period.

About DUO Labs

DUO Labs is an innovative deriative test platform, driven by community. At DUO labs, users can use DUO token to participate a series of deriative product testing. To encourage more community participation, return from deriative products are provided by DUO community reserve as per DUO token economy.

Revenue generated from DUO Labs product testing activities will be collected back and removed from circulation. DUO Network team will publicize such data periodically.

DUO Network Team

23 Aug 2019

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Thomas

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Thomas

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