Please refer to "What is BinFi?" if you are unfamiliar with the product.
This is the multi-leveraged investment product of BinFi, suitable for investors who are pursuing high-risk and high-reward. The Flame initially inputs a small amount of funds to gain access to a greater amount provided by The Rock. The Flame then invests in a Bincentive-selected premium strategy. Through high multi-leverages, investment profits magnify.
The premium strategy begins trading on the contract start date. Based on real-time performance, the expected standard annual return is set at 18%. As a result, the strategy will earn 90 USDT during the contract period. The trading team will receive 18 USDT given the 20% performance fee. The Flame will receive a total of 112 USDT, with 72 USDT after the performance fee has been deducted and another 40 USDT when the buffer has been returned. The actual annualized return is at 24% here. Let’s take a BTC based BinFi product for example. Given the same premium strategy estimated BTC-based annual return rate, The Flame that is priced at 0.01 BTC per unit will receive a total of 0.009 BTC, or 24% annualized.
Basic requirements for The Flame (currencies are based on user preferences):
1. 1 unit of The Flame is priced at 100 USDT or 0.01 BTC.
2. When a member successfully subscribes and matches 1 unit of The Flame with 1 unit of The Rock, the member will receive the capital gain distribution right on the tradable asset designated by the platform.
3. 10% platform fee will be charged for 1-unit subscription of The Flame.
The Flame’s initial investment can be separated into three usages:
Risk stake: This refers to interest payable, used for The Rock’s fixed interest payment. The amount of risk stake is set as 50% of the Flame’s initial investment.
Margin: This refers to the reserve of premium strategy’s potential loss buffer. If negative performance occurs during settlement period, margin is used as complement of The Rock’s collateral. If positive performance occurs during final settlement, margin will be paid back to the Flame. Margin is set as 40% of the Flame’s initial investment.
Platform fee: This refers to the Flame’s platform fee payment once the BinFi smart contract is deployed. Platform fee is set at 10% of the Flame’s initial investment.
(Above requirements are subject to change in each round of BinFi. Listed values on the current round of BinFi are the most accurate.)