Introduction
In bearish or sideways markets ("monkey markets"), reducing trading activity and focusing on wealth management becomes a strategic approach. Today, we'll explore OKX's structured financial products—innovative tools combining capital protection with yield opportunities.
What Are Structured Financial Products?
"Structured financial products are complex derivatives that combine underlying assets (like crypto, stocks, or commodities) with pre-designed risk/return profiles to meet specific investment goals." — GPT Definition
OKX offers three primary structured products:
- SharkFin
- Dual Currency
- Snowball
SharkFin: Capital Protection with Upside Potential
Key Features
✅ Guaranteed minimum yield
✅ High-yield opportunity via barrier options
✅ Short-term cycles (3–7 days) with auto-renewal
✅ Low entry threshold (10 USDT minimum)
How It Works
1. Base Yield Mechanism
Funds are allocated to low-risk instruments (e.g., stablecoin lending) to generate a fixed 3.5%–8.38% annualized base return.
Example: A 3-day BTC SharkFin guarantees 3.5% APY regardless of market direction.
2. High-Yield Trigger
Investors gain exposure to European barrier options:
Bullish SharkFin: Earns higher yields if the asset price stays within a defined range (e.g., $25,800–$29,600 for BTC).
Potential APY = 3.5% + [(Current Price - Lower Bound)/(Upper Bound - Lower Bound)] × (Max APY - Base APY)- Bearish SharkFin: Profits when prices decline within a range (e.g., $21,800–$25,700).
👉 Discover SharkFin strategies for volatile markets
Investment Flexibility
- 3-day products launch weekly (Mondays).
- 7-day products launch weekly (Thursdays) with auto-renewal options.
- Max allocation: 1.5M USDT per week per account.
Dual Currency: Strategic Entry/Exit Points
Product Types
| Type | Collateral | Target Price | Payout Structure |
|---|---|---|---|
| High-Sell | Crypto (BTC, ETH, etc.) | Below spot | Receive crypto + yield if price < target |
| Low-Buy | USDT | Above spot | Receive USDT + yield if price > target |
Key Mechanics
Yield scales inversely with target price probability:
- High-Sell: Lower targets = higher yields (up to 25.31% APY).
- Low-Buy: Higher targets = higher yields.
- Early redemption available for BTC/ETH 2+ day products.
Risk/Reward Comparison
| Scenario | High-Sell BTC ($27K target) | Low-Buy BTC ($24K target) |
|---|---|---|
| Price > Target | Receive USDT at target + yield | Earn USDT + yield |
| Price ≤ Target | Keep crypto + yield | Purchase crypto at target |
👉 Optimize your Dual Currency investments
Snowball: Advanced Options for High-Net-Worth Investors
Overview
- Minimum entry: 100K USDT (bullish) or 5 BTC (bearish).
- 28-day terms with knock-in/knock-out barriers.
Payout Scenarios (Bullish Snowball)
- No barrier triggers: Maximum yield (e.g., 15% APY).
- Knock-out triggered: Prorated yield based on days held.
- Knock-in triggered, closes above initial: Return principal.
- Knock-in triggered, closes below initial: Loss in BTC terms.
Product Comparison Table
| Feature | SharkFin | Dual Currency | Snowball |
|---|---|---|---|
| Min. Investment | 10 USDT | Varies by product | 100K USDT/5 BTC |
| Capital Protection | Yes | No | Conditional |
| Yield Range | 3.5%–8.38% APY | Up to 25% APY | Up to 15% APY |
| Best For | Short-term hedges | Directional bets | Large portfolios |
Strategic Use Cases
1. Hedging with SharkFin
Allocate equal funds to bullish and bearish SharkFins:
- One side earns base yield (3.5% APY).
- The other captures upside if prices move sharply.
2. Dual Currency as Synthetic Options
- Replace leveraged positions with defined-risk contracts.
- Avoid liquidation risks during volatility.
3. Snowball for Institutional Cash Management
- Park idle funds with partial downside protection.
FAQ Section
Q: Is SharkFin truly risk-free?
A: While it guarantees a base return, maximum yields depend on price staying within ranges.
Q: Can I lose money with Dual Currency?
A: Yes—if prices move beyond targets unfavorably (e.g., buying high or selling low).
Q: Who should avoid Snowball?
A: Investors needing liquidity—28-day lockups are inflexible.
Q: How are yields calculated?
A: APY accounts for compounding; actual returns scale linearly with holding periods.
Final Thoughts
OKX’s structured products cater to diverse needs:
- SharkFin: Ideal for conservative, short-term strategies.
- Dual Currency: For tactical traders seeking enhanced yields.
- Snowball: Tailored for institutional capital preservation.