Snowball is a high-yield fixed-income product with a certain degree of price downside protection. It offers investors a moderate bullish view while providing a certain level of protection against downside movements. The returns accumulate just like a snowball rolling downhill, growing larger as long as there are no significant pitfalls on the path.
1. Product Feature
| Potential High Return | Classified as High-Yield Products |
| Automatic Early Redemption | • Automatic redemption will be triggered if the underlying asset on the regular observation date equals or exceeds the knock-out price. • Investors benefit from the potential for automatic redemption, which may shorten the holding period to a very short duration. |
| Suitable Investors | • Suitable for investors who hold a moderate bullish view or believe the underlying asset will experience fluctuations within a certain range. |
| Purchase Target Token with a Discount | • At maturity (If there is no automatic redemption), if the maturity price is lower than the knock-in price, the product will convert to the target token at a price based on the knock-in price that is lower than the current market price. |
2. Product Example
| Term | 183 days with weekly observations for early redemption (the minimum term is 7 days) |
| Investment Token | USDT |
| Underlying Token | BTC/USDT |
| Knock-out Price | Initial Price*105% |
| Knock-in Price | Initial Price*85% |
| Yield（Annualized） | 33.5% |
| Automatic Knock-out Event（Weekly observation） | • If on any automatic knock-out observation date, the price of the underlying token reaches or exceeds the knock-out price. |
| Knock-in Event（Daily observation） | If on any knock-in observation date, the price of the underlying token is lower than the knock-in price. |
| Yield Terms | • Automatic knock-out(Early redemption), yield = principal +33.5% annualized interest • No automatic knock-out or knock-in, yield = principal +33.5% annualized interest • No automatic knock-out, but knock-in occurs, price at maturity > = target price, yield = principal. • No automatic knock-out, but knock-in occurs, price at maturity < target price, the initial principal will be converted into BTC at the knock-in price. |
3. Product Advantages
| Scenario | Snowball | Buy Spots at the Beginning | Products with Higher Returns |
| Significant Increase in Spot Price | Product knocks out, gaining 33.5% annualized return with early maturity. | Enjoy a significant increase in spot price | Buy Spots at the Beginning |
| Slight Increase in Spot Price | Product knocks out, gaining 33.5% annualized return with early maturity. | Gain from a slight increase in spot price | Snowball |
| Slight Decrease in Spot Price with a price higher than the knock-in price. | Product matures without knocking in, gaining 33.5% annualized return. | Bear the loss from a slight decrease in spot price | Snowball |
| Significant Decrease in Spot Price with a price lower than the knock-in price. | Convert to buying tokens at the knock-in price, gaining a 15% discount compared to directly buying spots at the beginning. | Bear the loss from a significant decrease in the spot price | Snowball |
If you are interested in purchasing Coincall Snowball products, please feel free to contact our VIP Manager via email at vip@coincall.com for a subscription. We will customize the best products and offer you the most competitive prices!
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