Understand OKX Token Snowball in One Article

Volatility is an inherent property of the market, bringing opportunities as well as risks to traders.

As the uncertainty of the global economic environment increases, traders' demand for structured products is gradually shifting from purely seeking returns to risk management and diversified allocation, while also raising their requirements for product transparency and liquidity. In particular, they are placing greater emphasis on asset allocation and risk management, avoiding blind following and speculative behavior. For example, after the 2008 financial crisis, global awareness of risk management significantly increased. Surveys show that in 2023, over 70% of traders consider risk management strategies when making investment decisions, compared to only 40% in 2000.

Finding a balance between risk and return has become a common consideration for traders and participants in financial platforms. Snowball products, with their flexible design, diversified returns, and certain risk control mechanisms, have gained widespread attention in the financial market. Snowball products are structured products linked to market performance, usually featuring trigger mechanisms and conditional returns, allowing traders to obtain predetermined returns or protect their principal under certain conditions. Over the past five years, the global market size of snowball products has maintained steady growth.

In addition to the traditional financial sector, snowball products are also popular in the emerging cryptocurrency market. To better respond to and meet users' diverse needs, OKX has launched the Tuning Coin Snowball after the original Snowball, helping users trade selected crypto assets and earn returns in bullish markets. Especially for many users holding BTC and ETH, who remain bullish on them in the future, it allows them to hold their coins while also achieving diversified returns.

Tuning Coin Snowball

Currently, OKX Tuning Coin Snowball supports two trading methods: bullish BTC and bullish ETH.

Users only need to invest their principal, with zero additional fees. Additionally, they can customize the subscription period, subscription amount, and subscription targets, among other things. Among them, the minimum investment amount for the bullish BTC product is as low as 0.0004 BTC, and for the bullish ETH product, it is as low as 0.005 ETH, making the participation threshold very low and user-friendly. Furthermore, OKX Tuning Coin Snowball can achieve three possible return scenarios: early profit-taking, maximum returns, and warning.

Before introducing the three possible return scenarios, let's help new users quickly understand snowball products. Simply put, bullish snowball products generally set a price range around the underlying asset: the lower limit of the range is the warning price, and the upper limit is the profit-taking price. Then, before the expiration date, the fluctuation of the target price within this range is observed. This results in three core scenarios.

Overall, in scenarios one and two, users can earn returns while ensuring their principal, but in scenario three, the amount returned to users may be less than the subscription amount, and the guaranteed annual return may not compensate for the losses. In extreme cases, the settlement price may also be far below the warning price.

In addition to the aforementioned zero additional fees and low investment thresholds, OKX Tuning Coin Snowball also has several core highlights. First, there is no need for currency conversion, meaning that whether investing in BTC or ETH, the return currency remains unchanged. Second, there are daily early profit-taking opportunities, as OKX will observe the profit-taking price daily, closely following market dynamics. Third, there is a protection mechanism against price declines, meaning that if the price does not break below the warning price, users continue to earn returns; if it breaks the warning price, the order will be settled on the same day.

Snowball vs. Tuning Coin Snowball

Compared to OKX Tuning Coin Snowball, the original OKX Snowball product offers bearish options and higher annual returns, but users' principal may be converted into stablecoins.

However, considering that many users prefer to hold BTC or ETH instead of stablecoins and are optimistic about the underlying assets, and since the original Snowball does not support BTC or ETH-based bullish options, OKX has now launched Tuning Coin Snowball to fully meet the diverse needs of different users.

It is particularly noteworthy that in loss scenarios, OKX Tuning Coin Snowball is better for users because the funds are returned to users on the same day when the trade is terminated, and users do not have to wait until the product ends.

In summary, OKX Tuning Coin Snowball and the original Snowball product each have their advantages and disadvantages, and users can choose based on their needs. Each structured product has its suitable market conditions, making the choice crucial.

Tutorial Guide

How to use OKX Tuning Coin Snowball? The steps are very simple:

1) Open the OKX App, select 【Finance】 - 【Earn Coins】 - 【Structured Products】 - 【Tuning Coin Snowball】

2) Taking bullish BTC as an example, choose your desired product based on different reference annual returns and terms, then click 【Next】 to enter the subscription page. Enter the 【Subscription Amount】, click 【Subscribe】, and complete the 【Confirmation】 to successfully subscribe.

3) Regarding the usage precautions for Tuning Coin Snowball: Tuning Coin Snowball is not a principal-protected product. With market fluctuations, subscribing to Tuning Coin Snowball will face three settlement situations (early profit-taking, maximum returns, and warning). In the warning situation, there may be partial losses, as shown in the figure below.

Innovation Continues

Market volatility is unpredictable, and users can utilize derivative tools within structured products to hedge specific market risks, such as interest rate risk and asset price risk. Through refined risk management strategies, traders can achieve certain returns while protecting their principal as much as possible.

Structured products are an innovative financial tool in the financial market, designed to meet users' specific risk-return needs by combining underlying assets and derivatives, increasing market trading volume and liquidity, and promoting market activity. Especially structured products with good liquidity can serve as important trading tools in the market, enhancing market efficiency. Since their inception, structured products have occupied an important position in the financial field due to their flexibility and diversity.

As a global leading cryptocurrency trading platform and Web3 technology company, OKX's structured products are at the forefront of the market, having successively launched Dual Currency Win, Seagull, Shark Fin, Snowball, and Tuning Coin Snowball, among others. In the rapidly changing cryptocurrency market, user demands are constantly evolving, driving the platform's optimization and innovation efforts. OKX is committed to continuously optimizing products and services through technological innovation to meet users' diverse and dynamically changing needs.

Moreover, through technological innovation, OKX has not only improved the performance and security of the trading platform but also met users' needs for diverse products and high-quality user experiences. In the ever-changing cryptocurrency market, OKX strives to ensure that every transaction on the platform is safe, convenient, and efficient.

Continuously meeting the needs of a broader user base will be key to the scalability of trading platforms and the cryptocurrency industry.

Disclaimer

The content of this article is for reference only. This article represents the author's views and does not represent the position of OKX. This article does not intend to provide (i) investment advice or recommendations; (ii) offers or solicitations to buy, sell, or hold digital assets; (iii) financial, accounting, legal, or tax advice. We do not guarantee the accuracy, completeness, or usefulness of such information. Holding digital assets (including stablecoins and NFTs) involves high risks and may fluctuate significantly. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. Please consult your legal/tax/investment professionals regarding your specific circumstances. You are responsible for understanding and complying with applicable local laws and regulations.