How to use Yield Hunter
What is Yield Hunter?
Yield hunter is a non-principal protected investment that helps OKX's users to get higher annualized returns.
Yield Hunter is a simplified option trading product. When users invest in the yield hunter, they receive premiums for selling option contracts, and your actual return depends on the relationship between the price of the expiry date and the target price. Users can choose between "earn unless price rise" and "earn unless price drop" to express their market view.
How is the yield calculated?
Take the BTC yield hunter product as an example. Users can choose to deposit it in with USDT or BTC
- Earn unless price rises
| Product | Deposit currency | Estimated Yield | P&L |
|---|---|---|---|
| BTC30,000 or lower on 10/27 |
USDT | 50USDT |
BTCUSD <=30,000 at settlement date Users enjoy a fixed return of 50 USDT BTCUSD >30,000 at settlement date The actual P&L is the difference between the 50 USDT earned and the loss between 30000 and the settlement price. Estimated P&L = 50 USDT - Investment Amount*Leverage*[(Index Price - 30,000) / 30,000] |
| BTC30,000 or lower on 10/27 |
BTC | 0.005BTC | BTCUSD <=30,000 at settlement date Users enjoy a fixed return of 0.005BTC BTCUSD >30,000 at settlement date The actual P&L is the difference between the 0.005BTC earned and the loss between 30000 and the settlement price. Estimated P&L = 0.005 BTC - Investment Amount*Leverage*[(Index Price - 30,000) / 30,000] |
- Earn unless price drops
| Product | Deposit currency | Estimated Yield | P&L |
|---|---|---|---|
| BTC30,000 or higher on 10/27 | USDT | 50USDT | BTCUSD >=30,000 at settlement date Users enjoy a fixed return of 50 USDT BTCUSD <30,000 at settlement date The actual P&L is the difference between the 50 USDT earned and the loss between 30000 and the settlement price. Estimated P&L = 50 USDT - Investment Amount*Leverage*[(30,000 - Index Price) / 30,000] |
| BTC30,000 or higher on 10/27 |
BTC | 0.005BTC | BTCUSD >=30,000 at settlement date Users enjoy a fixed return of 50 USDT BTCUSD <30,000 at settlement date The actual P&L is the difference between the 0.005BTC earned and the loss between 30000 and the settlement price. Estimated P&L = 0.005 BTC - Investment Amount*Leverage*[(30,000 - Index Price) / 30,000] |
3. What are the definitions of the relevant terms?
| Terms | Definition |
|---|---|
| Investment Currency | The currency of the user's investment, either USDT or the corresponding underlying currency |
| Settlement Date | The date of settlement, when the product expires,is based on the relationship between the expiration price and the target price |
| Target Price | Contract target price, the user can choose the target price to express the market trend range of expectations |
| Settlement Price | Arithmetic means of underlying index one hour before expiry time |
| Estimated APY | The annual percentage yield (APY) when the index price at settlement doesn’t exceed |
| Leverage | Leverage=Amount of actual participation in Yield Hunter / Investment Amount |
| Estimated liquidation price |
The estimated liquidation price is based on the strike price and current market conditions . The actual price is determined upon liquidation |
4. Are higher yielding products always a better choice?
Target price and duration are two important parameters of Yield Hunter. Generally, high estimated yield products have a higher risk of loss, so users should choose the products carefully according to the market expectations.
5.Will Yield Hunter be liquidated?
When leverage times greater than 1, the position will have the risk of liquidation , but the risk is limited to the current order position,and will not affect the other positions of yield hunter. At the same time, when choosing a high leverage order, the system will calculate the estimated liquidation price. The estimated liquidation price is based on the strike price and current market conditions . The actual price is determined upon liquidation.
6.Trading Guidelines
- Click on the APP trading navigation, go to Options, and select Options Copilot
- According to the market expectations, to choose earn unless price rises or earn unless price drops, click on Invest now to enter the order page, you can choose to invest BTC or USDT
- After placing a successful order, you can view it in the position; you can hold it to expiration and wait for settlement or close the position early in the middle of the process.