Bull Shark - BTC Underlying
Product Details & Payoff Scenarios
100% principal protection and guaranteed returns with high bonus yield.
Structure
Strategy - Shark Fin
Underlying Asset - BTC
Strike / Knock-Out Price - 110% / 125%
Investment Duration - 27 days
Deposit Assets - USDC, USDT, ETH, stETH
Key Benefits
100% Principal Protection – all deposited funds have no exposure to market risk and are fully principal protected
Strong Guaranteed Yield – at a minimum, earn a strong guaranteed yield (e.g. 12.75% APY on stablecoin deposits)
High Bonus Payout up to 30.65% APY – opportunity to earn a bonus that returns in total 2-3x more than the DeFi risk-free rate
Strong Backtesting - historical 18% probability of hitting bonus “in-fin”
Maintain Your Upside – deposit and earn in the same cryptoasset, so you maintain upside on the WBTC that you deposit
Real Yield – this passive strategy pays real yield, not volatile protocol tokens, making net realized PNL clear and predictable
Payoff Scenarios
For each scenario below, assume the following:
Investor deposits 100,000 USDC into the 'Bull Shark' Vault
Bull Shark terms:
Investment duration: 27-day
Underlying asset = BTC
Strike price = 110%
Knock-out price = 125%
Guaranteed APY = 12.75%
Bonus APY = Up to 17.9%
BTC price on Day 1 = $65,000
Scenario 1: Earn Bonus Yield
Example scenario: BTC price movements during a 27 day period
What happens in this scenario?
TLDR: deposit USDC, receive guaranteed yield and bonus payout in USDC
BTC price on Day 1 is $65,000 and ends on Day 27 at $79,000, which within the bonus payout range (110% - 125% of Day 1 price)
Thus the vault trade expires and the bonus + guaranteed yield is paid. The full principal that was deposited by the user is returned (100,000 USDC). The user earns ~0.92% APY from guaranteed yield and ~1.236% APY from bonus yield, paid in USDC (same currency as deposit)
Deposit and yield are automatically reinvested for compounding returns into a new 27-day vault
What is the payoff for the investor?
Initial deposit = 100,000 USDC
Deposit returned = 100,000 USDC
Yield earned = 2,156 USDC
Guaranteed APY = 12.75%, single 27-day vault yield = ~0.92%
Bonus Payout APY = 17.9%, single 27-day vault yield = ~1.236%
Total payoff = 102,156 USDC after 27 days (deposit + yield)
Scenario 2: Earn Guaranteed Yield Only - Above Knock-out
Example scenario: BTC price movements during a 27 day period
What happens in this scenario?
TLDR: deposit USDC, receive guaranteed yield in USDC
BTC price on Day 1 is $65,000 and ends on Day 27 at $85,500, which is above the knock-out of $81,250 (125% of Day 1 price)
Thus the vault trade expires, and the guaranteed yield is paid. The full principal that was deposited by the user is returned (100,000 USDC). The user earns ~0.92% yield paid in USDC (same currency as deposit)
Deposit and yield are automatically reinvested for compounding returns into a new 27-day vault
What is the payoff for the investor?
Initial deposit = 100,000 USDC
Deposit returned = 100,000 USDC
Yield earned = 920 USDC
APY = 12.75%, single 27-day vault yield = ~0.92%
Total payoff = 100,920 USDC after 27 days (deposit + yield)
Scenario 3: Earn Guaranteed Yield Only - Below Strike
Example scenario: BTC price movements during a 27 day period
What happens in this scenario?
TLDR: deposit USDC, receive guaranteed yield in USDC
BTC price on Day 1 is $65,000 and ends on Day 27 at $63,500, which is below the strike price of $71,500 (110% of Day 1 price)
Thus the vault trade expires and the guaranteed yield is payed. The full principal that was deposited by the user is returned (100,000 USDC). The user earns ~0.92% yield paid in USDC (same currency as deposit)
Deposit and yield are automatically reinvested for compounding returns into a new 27-day vault
What is the payoff for the investor?
Initial deposit = 100,000 USDC
Deposit returned = 100,000 USDC
Yield earned = 920 USDC
APY = 12.75%, single 27-day vault yield = ~0.92%
Total payoff = 100,920 USDC after 27 days (deposit + yield)
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