Snowball Product FAQ

What is a "Snowball" product?

A Snowball product is actually a type of structured note, similar to a fixed income security. It is commonly linked to various underlyings such as stocks or commodities and is widely recognized in Europe, Japan, South Korea, and China. On the VETA platform, the Snowball is primarily linked to BTC or ETH as the underlying asset. In simple terms, if you believe that BTC will not fall (e.g., by 25%) within the product period, you can receive coupon income.

Which investors are suitable for Snowball products?

Snowball products are suitable for investors who want to obtain fixed coupon income without having to trade cryptocurrencies directly. Based on historical data backtesting, the success rate of Snowball products has exceeded 80%.

How is the return calculated?

In most cases (Scenarios 1 and 2), you will receive the coupon income agreed upon for the product. Holding period return = Holding period * Annualized yield. Note that an early knock-out will result in a holding period shorter than the total product term. In Scenario 3, the product will return the full principal amount.

What are the product terms? Can the product end early due to a knock-out?

You will see the product terms on the specific product page, such as 28 days, 91 days, and 180 days. It is important to note that if a knock-out event occurs, it means the product will end early and redeem the principal and interest. (A knock-out event means the underlying asset's price is above the knock-out price on the knock-out observation date, considered an early redemption.) Early redemption is triggered only in the event of a knock-out (Scenarios 1 and 2), and investors will receive APR interest prorated for the annualized term. A knock-in event does not trigger early redemption.

What are the risks of products?

Snowball products are considered conservative investment products. Only in Scenario 4, that is, if a knock-in occurs without triggering a knock-out, will you incur a loss. In such a case, you will bear the loss from the initial benchmark price to the settlement price, and your loss will never exceed the loss caused by holding the underlying asset directly. If purchased with a USD stablecoin, this is equivalent to the number of BTC not decreasing.

What is the observation period?

During the life of the product, each observation period's price from 16:00 to the next day's 16:00 (UTC+8) will be the observation price for the observation period. At the start of the observation period, the knock-in and knock-out prices for this period are calculated, and it is monitored whether a knock-in (knock-out) event occurs.

What are knock-in/knock-out events?

Each observation period after subscribing to a Snowball will have a price range composed of a knock-in price and a knock-out price. It is then monitored whether the coin price touches or crosses the knock-in or knock-out price during the observation period. If the coin price touches or exceeds the knock-in price, it is a knock-in event; if the coin price touches or exceeds the knock-out price, it is a knock-out event.

Can I withdraw or redeem during the term?

No, partial or full redemptions are not permitted during the term. Redemption is possible only when the note comes to an end. Remember to click to choose redemption on the product settlement day.