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Bybit Shark Fin

Can't profit from choppy markets? With crypto structured products like Bybit Shark Fin, you can earn extra yields while still protecting your principal capital.

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With current crypto markets in a slump, retail and institutional investors are seeking ways to maximize their holdings while taking advantage of volatility. Trading volumes for crypto derivatives are on the rise, and the use of futures, options and perpetual swaps to hedge against 

This article examines crypto structured products and why they’re becoming popular with retail and institutional investors.

Traditionally, structured products have provided retail investors with easy access to derivatives that would have otherwise been out of their reach and helped them achieve their risk-return objectives. 

Investment banks typically offer structured products to their wealth-management clients for customized returns in financial markets. They can also be sold to the retail mass market.

A structured product often looks like a traditional security with a payment profile, similar to a bond or certificate of deposit, but with cash flows linked to the performance of other underlying assets. Banks use them as a way to manage the volatility of assets they own.

Crypto structured products have been launching since the first quarter of 2021. Various structured products are hoping to capitalize on the increasing awareness and opportunities to sustain yield in a highly volatile crypto environment.

What Makes Crypto Structured Products Worth Trying?

Crypto structured products have the distinct advantage of allowing investors to earn profits at rates higher than those of other products, while  simultaneously protecting their capital. Unlike other financial products, your initial capital is guaranteed no matter the market's direction. All you may lose is your potential gains.

With crypto structured products, HODLers and investors can access previously out-of-reach assets and hedge their positions while profiting in bullish and bearish markets. It’s worth noting that the underlying mix of assets can be tailored to suit any investor's particular needs, risk profile and expectations.

Pros and Cons of Crypto Structured Products

Crypto structured products offer a prepackaged collection of crypto derivatives in a format more accessible to newbies. However, there's a cap on what you can earn. To help you decide if it's the right investment product for you, here are the advantages of crypto structured products as well as their drawbacks.

Given increasing awareness of the benefits of crypto structured products amid a crypto winter, crypto structured products are becoming increasingly popular. Weighing the pros and cons before investing is extremely important. Of the launched products, Bybit’s Shark Fin Structured Product stands out with unique features.

The Bybit Shark Fin structured product ensures that your capital is protected. Your initial investment isn’t at risk, no matter what happens in the cryptocurrency markets. The final return is linked to the underlying asset.

You pay no fees to invest in Bybit Shark Fin. A minimum investment of 100 USDT or 100 USDC is all it takes to access these yielding investments. There is no upper limit to the amount that you can invest, though this is capped when the subscription amount is reached.

With short-term investment periods, you won’t have long to wait until you reap rewards. You have three short-term periods to choose from: 7, 14 and 21 days. Bybit releases weekly product plans.

Bybit investors can choose from one of two Bybit products — Bullish Shark Fin and Bearish Shark Fin. With a Bullish Shark Fin product, the higher the underlying settlement amount within the limits of the predetermined prices, the higher the yield. If you have a Bearish Shark Fin product, you’ll earn a higher yield at the lowest settlement price within the range.

When you buy a Bullish Shark Fin product, you'll have preset parameters that include price range, APR range and subscription period (7, 14 or 21 days). At the end of the subscription period, you'll earn the maximum yield if the underlying asset price is within the preset price range. Note that the higher the settlement price is within the preset price range, the higher the final yield.

You’ll still profit if the settlement price of the underlying asset equals or exceeds the preset price range at the end of the subscription period. In that case, the enhanced APR is used to calculate the yield. This will be lower than when the asset's price remains within range. 

Suppose the ultimate price of the underlying assets falls below the preset price range. Then the yield is determined using the guaranteed minimum APR, resulting in a lower gain than that obtainable in the two earlier scenarios.

Trader A buys a Bullish Shark Fin product. The product parameters are as follows:

On the settlement day, the price of BTC is $47,000 and the calculation of interest is based on the following formula:

For the Bearish Shark Fin product, you'll earn a higher yield when the final price of the underlying assets falls within the preset range. But unlike the Bullish Shark Fin product, the lower the settlement price while remaining within range, the higher the final yield.

When the price of your asset is below the preset range on settlement day, your yield will be calculated based on the enhanced yield, which is lower than when the price falls within the range.

Finally, if the price exceeds the present price band, the guaranteed minimum APR will be used, generating the lowest yield.

Trader B buys a Bearish Shark Fin product. The product parameters are as follows:

On the settlement day, the price of BTC is $45,000, and the calculation of interest is based on the following formula:

Crypto structured products consist of derivatives, securities and interest-bearing assets. They are structured to help small investors attain specific risk-return benefits using bespoke solutions.

With Bybit Shark Fin Solutions, individual investors also gain easy access to typically complicated derivatives, combined into an easily manageable instrument. Crypto structured products allow you to earn yield regardless of the market’s moves, complete with principal protection.

Ultimately, Bybit's Shark Fin is unique because it offers investors a high yield in turbulent markets. Here's a handy infographic that summarizes all you need to know about our Shark Fin product.

Crypto Structured Products: Maximizing Yields During Choppy Markets

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