From Dual Asset, Double-Win, Discount Buy, and Smart Leverage, Bybit structured products can help grow your assets. However, everything with an upside also has a downside. As such, understanding how the products work increases your chances of lining your pockets and not making losses.

Below, we look at the four Bybit structured products and follow up with examples and screenshots to quicken your grasp.

 

Bybit Structured Products: Dual Asset

The Dual Asset product lets you take advantage of price swings and trades in this product can last anywhere between one and five days.

The Bybit Dual Asset product is suitable when the market is moving up, down, or when there are small price movements. With this Bybit structured product, you can either buy your crypto at a lower price or sell it at a higher price making a profit along the way.

 

How Does Bybit Dual Asset Work?

First, the product works around an annual percentage yield (APY/APR) target price and settlement price. The target price is the price you want to lock when entering a trade. 

The settlement price, on the other hand, is the actual price that will be applied when the trade is being executed. Rewards are disbursed in either of the two coins depending on your trade’s outcome.

Structured Products from Bybit and especially Dual Asset looks a lot like options, only the durection is way shorter. There are a couple of other differences too: 

• Options can last for several months while a Dual Asset trade can last a maximum of five days
• You can’t be liquidated before the settlement date with Dual Asset which isn’t the case with options
• Dual Asset has fewer variables making it easier to handle compared to options
• You can’t close a trade before the settlement date with Dual Asset unlike with options.
   

Let me explain. 

If the current price of BTC is $71,000 and you want to buy at $70,000, the $70K becomes your target price. If at the point  of executing/closing the trade the price stands at $72K, $72,000 becomes the settlement price. 

Note that since the APR is annualized, it’s divided by 365 to apply it to the number of days between opening and closing your trade. Bybit Dual Assets supports over 20 coins with some options only available to the exchange’s VIP-level users.

Below is a table explaining returns calculation methods.

Bybit Structured Products: Discount Buy

Discount Buy is another Bybit structured product. Unlike Dual Asset which supports both buy and sell needs, Discount Buy only allows traders to buy crypto at a discount or a lower price. Think of it as the Dual Asset product but without the sell option.

The product uses the term “Knockout Price” to set the upper limit and the “Purchase Price” to set the target price. A Bybit Discount Buy trade can go one of three ways - a profit, a loss, and an interest. Let's explore each of the ways. 

Profit

You want to spend $1,000 to buy Bitcoin whose current price is $71,000. In placing the trade, you set your purchase price at $70,000 and your knockout price at $72,000. During settlement, BTC’s price is $71,500. The trade closes with your set purchase price of $70,000, giving you 0.014 BTC, despite the actual price being $71,500.

Loss

If the price drops to $69,500, your trade closes at $70,000, resulting in 0.014 BTC. This means you’ve incurred a loss since the buying price is above the settlement price although you’ll still get the same amount of coins as in the profit scenario.

Interest

When the price exceeds the knockout price, you earn an interest on the trade amount. If the price moves to $74,000 your initial investment amount in USDT plus interest. Here’s the formula for calculating payoff (trade amount + trade amount x %APR x 1/365 = payout). In our example, assuming the APR is 10%, we get 1,000 + 1,000 x 10% x 1/365 = 1,000.27 USDT.

Bybit Structured Products: Double-Win

Double-Win, just like Discount Buy and Dual Asset, is another short-term Bybit structured product. It is suitable for those looking to make gains during a volatile market or just want to manage their risks.

Unlike the other two Bybit structured products we’ve already discussed, Double-Win employs leverage. The Double-Win product also involves a win range and an expiration date. The range defines the upper and lower limits. For example, if the entry price is $70,000 and the range is +/- 500, the upper limit is $70,500 and the lower limit is $69,500.

A win comes when the settlement price is outside the range on both ends (below $69,500 and above $70,500), and you register a loss when the settlement price is within the range. 

Assuming the leverage you want to invest $1,000 with leverage of 10x. The entry price is $70,000, and the settlement price is $76,000. Using the formula Payoff = trade amount + leverage x trade amount x (settlement price - upper limit price) / entry price. Note, replace the “upper limit price” in the formula with the “lower limit price” if the settlement price is below the lower limit.

In our case it would be 1,000 + 10 x 1,000 x (76,000 - 70,500) / 70,000 = 1,785.71.

Bybit Structured Products: Smart Leverage

Smart Leverage is another Bybit Structured product that uses leverage. However, it supports a higher leverage, up to 20,000%, compared to Double-Win. Smart Leverage supports trades in a single direction, either up (long) or down (short), and is suitable for use when an asset has wild price swings in any direction.

Bybit Smart Leverage differs from other derivatives products on the exchange in the sense that it doesn't force you out of a trade, liquidated, until it’s time to close the trade/settle. The settlement price determines the price.

The Smart Leverage formula has three main components - the investment/trade amount, leverage, settlement price, and breakeven price. Note that the breakeven price is determined when placing a short or long position.

Here’s a table of what  the formulas look like for both short and long positions/trades. 

Suppose you want to take a long position on the price of BTC and you want to stake $10,000 in the trade, how much will you earn? Take leverage to be 100X, entry price to be $70,000, breakeven price to be $72,000, and the settlement price to be $73,000. In this case BTC surges.

The payoff will be 10,000 + (10,000 x 100 x (73,000 - 72,000) / 72,000) =$23,888.88. Since our investment was $10,000, the actual profit is $23,888.88 - $10,000 = $13,888.88.

 

Final Remarks

Bybit structured products provide extra ways for crypto holders to grow their holdings in a less risky environment. One thing to note is that trades using any of the products can only last a few days. Although trading with leverage boosts your profits, it also does the same with your losses.

If you'd like to start using strucutred products on Bybit you can take the first step by creating an account.