How to use the OKX Shark Fin product? (Capital protection)

Understanding Shark Fin Structure

1. Shark Fin is a structured product offered by OKX that combines fixed income with optional upside participation in underlying asset price movement.

2. The product guarantees 100% principal protection at maturity if the underlying asset does not breach the pre-defined knock-out barrier during the observation period.

3. If the underlying stays within the barrier range, investors receive a predetermined coupon plus return of principal.

4. The barrier level is set at issuance and remains static throughout the term, typically expressed as a percentage above or below the initial spot price.

5. The underlying assets supported include BTC, ETH, and select stablecoin pairs—each with distinct barrier parameters and tenors.

Subscription Process on OKX Platform

1. Users must hold sufficient balance in their OKX Spot Wallet in the designated base currency—USDT for most Shark Fin offerings.

2. Navigate to the “Earn” section, then select “Structured Products”, followed by “Shark Fin” under the capital-protected category.

3. Choose an active campaign based on maturity date, annualized yield, and barrier width—wider barriers generally imply higher probability of coupon payout but lower maximum yield.

4. Enter subscription amount, review terms including start date, maturity date, knock-out barrier, and guaranteed minimum return.

5. Confirm transaction using wallet password or two-factor authentication; funds are immediately locked for the duration.

Risk Parameters and Barrier Mechanics

1. A knock-out event occurs when the underlying’s index price touches or exceeds the upper or lower barrier at any time during the observation window.

2. Upon knock-out, the product terminates early and delivers a prorated coupon based on days elapsed divided by total term, plus full principal repayment.

3. No loss of principal occurs regardless of market direction—even if the underlying drops 40% and never breaches the barrier, the full principal is returned.

4. Barriers are calculated using a composite index, not exchange-specific tickers, reducing manipulation risk and ensuring fair valuation.

5. Observation intervals are continuous and timestamped every 30 seconds, with data sourced from OKX’s internal index engine fed by multiple spot exchanges.

Yield Calculation Scenarios

1. If no knock-out occurs: investor receives 100% principal + full fixed coupon, e.g., $10,000 principal + $240 coupon for a 90-day 9.6% APY product.

2. If knock-out happens on day 45: investor receives $10,000 + ($240 × 45/90) = $10,120.

3. If underlying closes exactly at barrier on final observation: still qualifies as knock-out, triggering early settlement with proportional coupon.

4. Coupon accrual begins on the official start date—not subscription date—so timing of purchase affects effective yield only if subscription falls after issuance cutoff.

5. All yields are quoted in APY terms but calculated using actual/365 day count convention, meaning leap years add one extra accrual day.

Frequently Asked Questions

Q1. Can I withdraw funds before maturity?No. Shark Fin positions are non-transferable and non-redeemable prior to maturity or knock-out event. Liquidity is fully locked until settlement.

Q2. Is the coupon paid in the same token as the subscription?Yes. Subscriptions in USDT result in USDT-denominated principal and coupon payouts. No auto-conversion or token swaps occur.

Q3. What happens if OKX ceases operations during the term?The product is backed by OKX’s balance sheet and governed by the Terms of Use signed at subscription. Settlement obligations remain enforceable per contractual clause 7.2(b).

Q4. Are taxes applied automatically on coupon earnings?No. OKX does not withhold taxes. Users are solely responsible for reporting income according to local jurisdiction requirements.