Since Buy-the-Dip is a Dual Investment product, we recommend reading our Dual Investment guide first. In addition, if you don’t have tokens but wish to purchase, we recommend you refer to our 'Buy-the-Dip' article. This will help you understand the basics and how the product works before you invest.
What is Covered Gain?
Covered Gain is a dual investment product that lets you earn high interest income before you successfully sell crypto at your target price. The APY for Covered Gain can range from 10% to even around 300% depends on the target price and settlement date.
What is the best time to use Covered Gain?
If you have a strong belief about what price BTC will grow to and that there will be a downward movement in price sooner or later after the increase, it is a good strategy to subscribe to our Covered Gain product to sell BTC at your target sell price and earn passive income simultaneously. You can treat passive income as a bonus along with your trade.
How does Covered Gain work?
Suppose you would like to sell 1 BTC at 22,000 USDT, but the current price of BTC is 20,000 USDT. In this case, you can subscribe to our Covered Gain product at the target sell price of 22,000 USDT to earn some interest before the price reaches your target. Assume you subscribed to Covered Gain with a target sell price of 22,000 USDT, duration of 1 day, APY of 30%, and return at the settlement of 0.6%.
You would expect the following payoff at settlement:
Scenario 1: Price of BTC < 22,000 USDT, you get (1+0.6%) in BTC
Scenario 2: Price of BTC ≥ 22,000 USDT, you get (1+0.6%)*22000 = 22132 in USDT
In other words, if the market price stays below the target price, you’ll earn interest in crypto at settlement. And if the market price rises above or at the target price, you’ll sell cryptos and interest earned at the strike price.
Note: APYs and returns are different with various settlement dates and strike prices, and we will provide you with different combinations for you to choose
Modes and Parameters Setting
Covered Gain has two modes: Basic Mode and Pro Mode.
Basic mode
This is suitable for selling crypto at a fixed price.
Definitions：
Selling Price: The target price at which you want to sell crypto.
Investment: The amount of crypto you want to invest.
Lowest tolerance APY: The lowest APY you expect to earn. The strategy will filter out and skip any dual investment product with an APY lower than the submitted value.
Longest period: This is your acceptable investment period. The strategy will filter out and skip any dual investment product with a settlement date (duration) longer than the submitted value.
Rules for auto-reinvest： When you enable the Auto-reinvest feature, the product will automatically reinvest your investment and yield into a new term with the same target price once the previous term expires until you successfully sell crypto. You can also locate the auto-renewal condition based on your strategy settings by following the steps shown in the image below.
Pro mode
This is suitable for selling crypto at a rise in percentage from the current price.
Definitions：
Rise from price: How much price rise in percentage would you expect to sell crypto
Investment: The amount of crypto you want to invest.
Lowest tolerance APY: The lowest APY you expect to earn. The strategy will filter out and skip any dual investment product with an APY lower than the submitted value.
Longest period: This is your acceptable investment period. The strategy will filter out and skip any dual investment product with a settlement date (duration) longer than the submitted value.
Auto-reinvest Rule: If you turn on auto-reinvest, the system automatically searches for dual investment products and selects the best fit for you. The products will have strike prices at “price at settlement of the last round *(1 + price rise in percentage)” when your subscription expires. We will reinvest your original investment and earned interest for you until you successfully sell crypto. You can also locate the auto-renewal condition based on your strategy settings by following the steps shown in the image below.
How to invest in the Covered Gain Strategy?
To get started, simply follow the tutorials for the Dual Investment strategy and create your first order today.
In APP：
Step 1: Open the Pionex app and go to [Earn] - [Structured] - [+ Invest] to access the structured products.
Step 2: Select [Covered Gain] from the list of structured products. Choose the desired mode; for this tutorial, we will choose [Pro Mode]. Then select the asset you wish to buy, input the percentage value, and configure the advanced settings (optional). Finally, click [Search] to find the applicable dual investment products that match your parameters and choose your preferred dual investment product.
Step 3: Review the product details and click [Purchase]. Input the investment amount, enable “Auto re-invest” if required (optional), and click [Confirm]. Then check the box to acknowledge the risks and benefits, and finally click [Confirm] to place your Covered Gain order.
On the Web：
Step 1: Log in to your Pionex account, click [Earn] in the upper menu bar, then select [Structured] - [Earning Robot].
Step 2: Select Covered Gain from the list of structured products by clicking [Create the Bot]. Choose the desired mode; for this tutorial, we will select [Pro Mode]. Then choose the asset you wish to buy, input the percentage value, and configure the advanced settings (optional). Finally, click [Search] to find the applicable dual investment products that match your parameters.
Step 3: The applicable dual investment products that match your parameters will be displayed. Choose your preferred dual investment product, click the [Details] button to view the product details, and then click [BUY].
Step 4: Input the investment amount, enable “Auto-invest” if required (optional), and click [OK]. Then check the box to acknowledge the risks and benefits, and finally click [OK] to place your Covered Gain order.
Benefits and Risks
Benefits:
Earn high interest in crypto until your target sell price is reached
Sell BTC at your target price while still earning interest
Risks:
The price may continue rising after your BTC is sold
At settlement, if the market price is higher than your target, you will still sell at your set price, which means losing some potential returns
Covered Gain FAQ
Q： What is the best time to use Covered Gain?
A： When you are holding crypto and want to earn yield while waiting to sell at your target price. For example, if you believe BTC may rise to $65,000 and are comfortable selling at that price even if the market goes higher, you can subscribe to Covered Gain with a target sell price of $65,000 and your chosen settlement date.
If, at settlement, the BTC price is below $65,000, you will earn additional BTC at the displayed yield.
If the BTC price is at or above $65,000, your investment plus the yield in BTC will be sold at $65,000 and credited to your account in USDT..
Q： What would happen if I subscribed to a Covered Gain to sell BTC with a Target Sell Price of $65,000, but the price suddenly rises to $70,000 at settlement?
A： You will sell BTC at $65,000 and earn yield in USD simultaneously.
Q： Are there any risks associated with Covered Gain?
A： Yes. The main risk of Covered Gain is the opportunity cost if the market price keeps rising after your subscription is exercised.
For example:
If your Covered Gain subscription is set with a target sell price of $65,000 and, at settlement, BTC is $70,000, your BTC (plus interest earned) will still be sold at $65,000.
This means you may miss out on additional gains above your target price.
In short, the risk is similar to selling crypto at your chosen price and then seeing the market move higher afterward.
Q： How can I view my subscription?
A： Website: In the Structured Running Orders page, you can view your current subscription and redemption items.
APP: Go to [[Earn] – [Structured] – [My structured]. Here you can view your current subscription and redemption items.
Q： What are the differences between basic mode and pro mode?
A： Different Strategies: In basic mode, we sell crypto at a fixed price; with pro mode, we sell crypto at the percentage price rise.
Different auto-reinvest rules: In basic mode, we filter and select the product with the same target sell prices for auto-reinvestment after the product expires. In Pro mode, we calculate the target sell price based on the expected percentage rise and select the corresponding product for auto-reinvestment when it expires.
Q： When should I turn on auto-reinvest in pro mode?
A： You should turn on auto-reinvest in Pro Mode when you are holding crypto, want to earn additional income, and believe the market will move sideways. For example, if you set the target price rise to 10%, and the market rises more than 10%, but selling at that 10% increase is still acceptable to you, then auto-reinvest is a good option.
For example, suppose the current price of BTC is $20,000, and you expect the price to move between -10% and +10% ($18,000–$22,000).
If, at settlement, the BTC price (say $20,200) is below the sell price, you will earn more BTC at the displayed yield. We will then automatically reinvest for you in a new product with a 10% price rise from the current price for the next round.
If the BTC price is at or above the sell price, your investment plus the additional income will be sold at $22,000 and credited to your account in USDT.
Please get in touch with Pionex Support if you have any other questions.