A Detailed Explanation of the Advantages and Risks of Matrixport Seagull

Recently, Matrixport officially launched a structured product, Seagull. Combining the advantages of “Dual Currency” and “Smart Trend,” Seagull has garnered positive user feedback since its debut. However, some users are unsure how to navigate Matrixport’s wide range of structured financial products and choose the right one.

This article will compare Seagull with other structured products to further demonstrate Seagull’s product principles and usage scenarios, helping users better utilize structured products to amplify returns.

What is Seagull?

Seagull is an innovative structured product based on a combination of options, similar to the principle of Seagull options in traditional finance, It is composed of three option strategies with the same expiration date.

Simply put, Seagull is a “special structure” dual currency product. It has a similar risk structure to dual currency products. Still, it solves the problem of standard dual currency products missing out on gains in one-sided market trends, allowing for amplified returns in such scenarios.

Comparison of Seagull with Other Structured Products

To help users better understand the Seagull product, we have comprehensively compared Matrixport’s current structured products in terms of market suitability, product principles, estimated returns, and additional factors for users’ reference.

Overall, Seagull offers more flexible investment periods, more usage scenarios, lower risk, and can get more returns under suitable conditions.

Seagull’s Payoff Analysis and Usage Scenarios

Seagull supports both bullish and bearish directions. Users can select the suitable market direction and investment period based on market forecasts. The final return amount and settlement currency are derived from the comparison results of the expiration price, benchmark price, conversion price, and maximum return price.

Take a Seagull Bullish product as an example and analyze the payoff of Matrixport Seagull products. Suppose we use USDT to purchase a Seagull bullish BTC-USDT product, and the BTC expiration is X. For convenience, we name the three key price points in the Seagull product: conversion price, benchmark price, and high yield price as A, B, and C, respectively.

If X >= C, you will receive the highest APY, and the settlement amount = principal * (1 + max APY * total duration / 365) USDT

If B < X < C, you will receive the APY from base to highest, and the settlement amount = principal * (1 + interval APY * total duration / 365) USDT

If A < X <= B, you will receive the base APY, and the settlement amount = principal * (1 + base APY * total duration / 365) USDT

If X <= A, you will receive the base APY and settle by BTC. The settlement amount = principal(USDT) * (1 + base APY * total duration/ 365) / A BTC

Seagull’s unique multi-level return structure ensures the base APY while capturing more returns in unilateral market trends. Also, if the market trend is against your choice, the base APY can also hedge against potential losses caused by currency price fluctuations.

Of course, Seagull does have its limitations. The principle of Seagull products also determines that there are certain risks. For example, in the case of drastic market fluctuations, Seagull’s returns may be lower than expected. Additionally, under an extreme bull market, Seagull may prevent users from capturing all the gains, and the limited downside protection cannot fully cover user losses caused by price fluctuations in the extreme bear market.

In a highly volatile market environment, structured products have become the go-to choice for many users. Matrixport’s Seagull product provides users with a new way to deal with unilateral market fluctuations. Whether bullish or bearish, users can flexibly respond to market changes through Seagull products and obtain multi-level returns in different price ranges.

Whether bullish or bearish, users can flexibly respond to market changes through Seagull products and obtain multi-level returns in different price ranges.

Disclaimer: The above content is for informational purposes and reference only. The content does not constitute investment advice. Digital asset transactions can be precarious and volatile. Investment decisions should be made after carefully considering individual circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.

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