1. What is the prerequisite to subscribe to Dual Currency?
To subscribe to Dual Currency, the account must meet the following two conditions:
- completed Identity Verification
- enabled Dual Currency product
You can log in to Sparrow account, and click [] - [Identity Verification] / [Global Setting] to view the status of your identity verification and product access.
Note: Sparrow Dual Currency services are non-regulated provided by Sparrow Digital Pte Ltd. We do suggest that you need to read and acknowledge the relevant agreement before subscribing to Dual Currency to ensure that you have fully understood the risk and reward of the product.
2. Which settlement currency I will receive at maturity？
There are two types of Dual Investment products: Buy Low and Sell High.
Buy Low - BTC/ETH：invest USDⓢ/USDT,
if the market price at maturity is above the strike price, the product will be settled in USDⓢ/USDT;
if the market price is below or equal to the strike price, the product will be settled in BTC/ETH.
Sell High - BTC/ETH：invest BTC/ETH,
if the market price at maturity is above or equal to the strike price, the product will be settled in USDⓢ/USDT;
if the market price is below the strike price, the product will be settled in BTC/ETH.
Note: ETH→BTC is regarded as Sell High-ETH Product, BTC→ETH as Buy Low-ETH Product, both follow the above settlement rules.
3. When will I get my returns?
Each subscribed product has a maturity date. The BTC/ETH market price is the average of index price in the 30 minutes before 16:00 (UTC+8) at maturity of the respective Dual Currency order. Settlement currency and return will be credited to your Wallet within 24 hours from 16:00 (UTC+8) on the maturity date. Subscriptions are irrevocable and early redemption before maturity is not allowed. You will hold the product until maturity.
4. What are the uncertainties and potential risks of Dual Currency?
The only uncertainty is the currency type that the yield will be paid off, which depends on how the market price compares with the strike price upon maturity. The risk of this product mainly comes from the volatility of the market: the higher the volatility, the harder it is to predict the market price and where it might be compared with the strike price at maturity. Please refer to Dual Currency Agreement for more details of the potential risks.
5. Are products with higher yields always the better choice?
Maturity and strike price are two important and correlated parameters of Dual Currency. Products with a high yield do not always indicate they are better. Risk and reward coexist. Investors need to make the investment decision based on their own preferences.
6. How can I check my Dual Currency orders?
You can check your current and completed Dual Currency orders via [Invest]-[Orders].
7. Are the strike price and APR fixed?
The strike price is fixed and will not change. Occasionally, we may suspend accepting new subscriptions temporarily if a product has a strike price too close to the current reference Spot price.
APR is always changing and this is majorly dependent on the strike price, maturity, and also market volatility. Once you have subscribed to a Dual Currency product, the APR will be locked in throughout your tenor of the subscription and will not change thereon.
8. How are APR and Yield related?
APR = Yield / (Maturity - Subscription date) * 365
9. Limits on purchase
(1) There is a purchase limit for single orders.
BTC: 0.01 – 50, ETH: 0.5 – 500, USDⓢ/USDT: 100 – 5,000,000
(2) There are no purchase limits for every user on the whole.
10. What are the differences between these two modes?
(1) Popular: View platform-recommended products based on market conditions for quick comparisons and selection.
(2) Customized: Condense all settings onto one page for a better overview. Recommended for experienced users.