Discount is a strategy for accumulating crypto assets: everything about Buying at a discount

Discount is a special financial instrument designed for investors who want to purchase cryptocurrencies more advantageously during periods of market stability. Buying at a discount allows you to obtain a price below the current level by establishing certain term conditions. The product functions similarly to a knock-out option but differs in that it lacks a mechanism for expiration without profit — the investor will either take action or receive a refund regardless.

The essence of the discount: how the Discount Purchase works

A discount is the opportunity to buy a desired coin at a pre-set purchase price, which is lower than the market value at the time the order is placed. The system involves setting two critical price levels. The first is the purchase price, where the trader will acquire the coins under favorable conditions. The second is the knockout price, which serves as an upper limit: if the price at the time of calculation exceeds it, the investment is refunded with an added coupon income in the form of APR (annual percentage rate).

The structure of the Discount Purchase fundamentally differs from classic options in that it does not involve losing the right to execute. The investor either acquires the crypto asset at a favorable price or returns the principal amount with interest — there is simply no negative scenario.

How it works and main calculation scenarios

When the product’s expiration date arrives, one of three possible outcomes occurs.

Scenario 1: Successful purchase
If the final price is higher than the purchase price but below the knockout price, the trader receives the desired cryptocurrency at the set purchase price. This is a profitable deal because the final price turned out to be higher than the execution threshold.

Scenario 2: Loss-making purchase
If the final price drops below the purchase price, the investor still acquires the coins at the purchase price — but in this case, the deal is unprofitable because they pay more than the market value of the asset.

Scenario 3: Knockout activation
If the final price exceeds the knockout level, instead of purchasing, the investor receives a refund of their initial investment plus accumulated coupon income (calculated at APR).

Practical example: calculations under different conditions

Suppose investor Dmitry decides to use a Discount Purchase to accumulate BTC. He invests 10,000 USDT at the current market price of Bitcoin at 30,500 USDT. His position parameters are set as follows:

• Purchase price: 29,900 USDT
• Knockout price: 31,000 USDT

Let’s see how the results are calculated under different final prices.

If the price is 30,800 USDT:
This level is below the knockout (31,000 USDT), so the purchase is executed. Dmitry acquires 0.33 BTC at 29,900 USDT, spending 10,000 USDT. Since the final price is 30,800 USDT, higher than the purchase price, this is a profitable execution.

If the price drops to 29,000 USDT:
The final price is below the purchase price (29,900 USDT), but the purchase still occurs. Dmitry receives the same 0.33 BTC, but in this case, the deal is unprofitable — he paid 29,900 USDT for an asset worth 29,000 USDT on the market.

If the price rises to 32,000 USDT:
This exceeds the knockout level, so the third scenario activates. Instead of buying, Dmitry receives a refund of his investment plus income. With an 8% annual rate, for one day, the calculation is:

Payout = 10,000 USDT + (10,000 × 8% ÷ 365) = 10,002.19 USDT

Dmitry gets back his principal with minimal interest bonus and maintains liquidity for other opportunities.

What to watch out for: risks and limitations

While a discount is an attractive opportunity, it’s important to understand its limitations. The main risk is that the set purchase price, although below the market at order placement, may turn out to be higher than the final price. In such cases, execution occurs at the set purchase price, and the investor incurs a loss.

Also, keep in mind the following parameters of the product:

• Minimum investment amount is 10 USDT, maximum is 1,000,000 USDT
• Once the order is placed, it cannot be canceled or parameters adjusted
• Execution occurs on the set date; extension of terms is not allowed

Discount purchases are best suited for periods of market stability when the investor is confident that the price will move within a certain corridor but does not want to take on unlimited risk from sharp price surges.