Discount Buy is an advanced financial management tool that allows users to optimize their capital allocation under varying market conditions. Users can purchase a target crypto at a discounted price; if the purchase is not triggered, they can get back their principal and receive interest, allowing their funds to achieve more efficient value across different market trends. Simply select the purchase price of the target crypto at the start, and upon maturity, you will receive corresponding returns based on market movements, enabling your funds to achieve more efficient value growth amidst market fluctuations.
If the Settlement Price is below the Knockout Price, you will buy the crypto at your preset discounted purchase price. If the Settlement Price is equal to or above the Knockout Price, the purchase is not triggered, and you get back your principal plus USDT interest.
For MNT products, there is no knockout limit — you always buy MNT at the preset discounted price at maturity and enjoy MNT holding benefits during the lock-up period.
Suitable for
Discount Buy is suitable for users who want to purchase crypto at a more favorable price when the market price fluctuates around a preset buy and knock-out price range. In this scenario, users can ensure the safety of their principal while taking advantage of the discounted entry opportunity.
For MNT products, since there are no knock-out restrictions, users can buy MNT at the preset discounted price upon expiration, regardless of how much the market price rises. The higher the price rises, the more pronounced the advantage of buying at a discount becomes, and the greater the potential profit.
Understanding Key Terms
How It Works
Non-MNT products
You need to invest a certain principal to subscribe to a Discount Buy plan. At maturity, there are two possible scenarios:
Buy Scenario
If the market price at maturity is equal to or below the Knock-In Price, the system will purchase the target cryptocurrency at your preset purchase price. As shown in the left illustration below, the settlement price is below the Knockout Price on the settlement date. Since the Knockout condition is not triggered, the system will purchase the selected cryptocurrency at the preset purchase price.
Knockout Scenario
If the market price at maturity is above the Knock-In Price, the target cryptocurrency will not be purchased.Instead, you will receive your principal together with your USDT yield. As shown in the right illustration below, the settlement price is above the Knockout Price on the settlement date, triggering the Knockout condition. You will receive your returned principal together with the yield calculated based on the APR using the following formula: Principal × APR ÷ 365 × Investment Duration (Days)
Example
Trader A invests 10,000 USDT in BTC via Discount Buy.
- Current BTC Price: 30,500 USDT
- Investment Duration: 1 day
- Purchase Price: 29,900 USDT
- Knockout Price: 31,000 USDT
- Knockout APR: 8%
Scenario 1: Buy Scenario
If the Settlement Price is 30,800 USDT, which is below the Knockout Price of 31,000 USDT, Trader A will purchase BTC at the preset purchase price of 29,900 USDT upon settlement and receive approximately 0.334448 BTC (10,000 USDT ÷ 29,900 USDT) at settlement.
Scenario 2: Knockout Scenario
If the Settlement Price is 32,000 USDT, which is above the Knockout Price of 31,000 USDT, Trader A will receive the initial investment principal together with the yield based on the 8% APR upon settlement. The total return is calculated as: Initial Investment Principal + APR Yield = 10,000 + (10,000 × 8% × 1 ÷ 365) ≈ 10,002.19 USDT
MNT Products
For MNT Discount Buy products, your subscription is converted into an MNT holding immediately after the subscription is confirmed. Throughout the lock-up period, your position is treated as an MNT holding, allowing you to enjoy the benefits associated with your MNT holdings.
Unlike standard Discount Buy products, MNT Discount Buy products do not have a target price or a Knockout Price. On the settlement date, the system will purchase MNT at the predetermined purchase price, which is lower than the market price. As shown in the example below, on the settlement date, regardless of how the market price moves, you will purchase MNT at 1.1802 USDT, allowing you to benefit from both the discounted purchase price and the privileges associated with holding MNT.
Example
Trader B invests 10,000 USDT in MNT Discount Buy.
- Current MNT Price: 1.3000 USDT
- Investment Duration: 1 day
- Preset Purchase Price: 1.1000 USDT
Since MNT Buy at Discount products do not have a Knockout Price, Trader B will purchase MNT at the preset purchase price of 1.1000 USDT on the settlement date, regardless of the settlement price. Trader B will receive approximately 9,090.9091 MNT (10,000 USDT ÷ 1.1000 USDT). Once the MNT is credited on the settlement date, it can be used freely.
Notes:
— The figures shown are for illustrative purposes only.
— Although the preset Purchase Price is lower than the market price at the time of order placement, it may still be higher than the Settlement Price at maturity if the asset price drops sharply. In such cases, the purchase is settled at the preset Purchase Price, which could result in a loss.
To learn more about Discount Buy, refer to the following articles: