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On this page
  • Structure
  • Key Benefits
  • Payoff Scenarios
  • Scenario 1: Earn Bonus Yield
  • Scenario 2: Earn Guaranteed Yield Only - Above Knock-out
  • Scenario 3: Earn Guaranteed Yield Only - Below Strike
  1. Products
  2. Vault Products
  3. Shark Fin Strategy (SFN)
  4. Products

Bull Shark - ETH Underlying

Product Details & Payoff Scenarios

100% principal protection and guaranteed returns with high bonus yield.

Structure

  • Strategy - Shark Fin

  • Underlying Asset - ETH

  • 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 crypto asset, so you maintain upside on the ETH, stETH or stables 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:

  1. Investment duration: 27-day

  2. Underlying asset = ETH

  3. Strike price = 110%

  4. Knock-out price = 125%

  5. Guaranteed APY = 12.75%

  6. Bonus APY = Up to 17.9%

  7. ETH price on Day 1 = $3,200


Scenario 1: Earn Bonus Yield

Example Scenario: ETH price movements during a 27 day period

What happens in this scenario?

  • TLDR: deposit USDC, receive guaranteed yield and bonus payout in USDC

  • ETH price on Day 1 is $3200 and ends on Day 27 at $3650, 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: ETH price movements during a 27 day period

What happens in this scenario?

  • TLDR: deposit USDC, receive guaranteed yield in USDC

  • ETH price on Day 1 is $3200 and ends on Day 27 at $4150, which is above the knock-out of $4000 (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: ETH price movements during a 27 day period

What happens in this scenario?

  • TLDR: deposit USDC, receive guaranteed yield in USDC

  • ETH price on Day 1 is $3200 and ends on Day 27 at $3100, which is below the strike price of $3520 (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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Last updated 10 months ago

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