Volatility is an inherent characteristic of markets, bringing both opportunities and risks to traders.
As global economic uncertainty increases, trader demand for structured products is gradually shifting from pure pursuit of returns toward risk management and diversified allocation, while requirements for product transparency and liquidity are also rising. In particular, they place 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.
How to balance risk and return as effectively as possible has become a shared concern among traders and financial platforms. Snowball products, with their flexible design, diversified returns, and certain risk control mechanisms, have attracted widespread attention in financial markets. A snowball product is a type of structured product linked to market performance, typically featuring trigger mechanisms and conditional returns, allowing investors to receive predetermined returns or principal protection under specific conditions. Over the past five years, the global snowball product market has maintained steady growth.
Beyond traditional finance, snowball products have also gained popularity in emerging crypto markets. To better respond to and meet diverse user needs, OKX, after launching standard snowball products, has now introduced Staking Snowball, helping users trade selected crypto assets and earn returns during bullish market conditions. In particular, for many users holding BTC and ETH who remain bullish about their future prospects, this allows them to hold their coins while also achieving diversified returns.
Staking Snowball
Currently, OKX Staking Snowball supports two trading options: Bullish BTC and Bullish ETH.
Users need only invest principal with zero additional fees. Additionally, they can customize subscription terms, amount, underlying assets, and more. The minimum investment for the Bullish BTC product is as low as 0.0004 BTC, and for Bullish ETH, it's just 0.005 ETH—making entry barriers very low and highly accessible to a broad user base. Moreover, OKX Staking Snowball offers three possible return scenarios: early profit-taking, maximum return, and warning-level settlement.
Before introducing these three potential return scenarios, let’s help new users quickly understand how snowball products work. Simply put, a bullish snowball product usually defines a price range around the underlying asset: the lower bound is the warning price, and the upper bound is the profit-triggering price. Then, before the maturity date, the final outcome depends on how the target price moves within this range, leading to three core scenarios.
Overall, in Scenario One and Scenario Two, users can earn returns while preserving their principal. However, in Scenario Three, the payout may be less than the initial subscription amount, and guaranteed annualized returns might not offset losses. In extreme cases, the settlement price could fall significantly below the warning level.
Besides zero extra fees and low minimums, OKX Staking Snowball features several key advantages. First, no token conversion is required—whether you deposit BTC or ETH, your payout will be in the same currency. Second, daily early profit-taking opportunities: OKX monitors the profit-triggering price daily, closely tracking market dynamics. Third, downside protection mechanism: if the token price does not breach the warning level, users continue earning returns; once the warning level is breached, the order settles on the same day.
Snowball vs. Staking Snowball
Compared to OKX Staking Snowball, the original OKX Snowball product offers bearish options and higher annualized returns, but users’ principal may be converted into stablecoins.
However, considering many users prefer holding BTC or ETH rather than stablecoins and are optimistic about these assets, and since the original snowball doesn't support BTC or ETH-denominated bullish positions, OKX has now launched Staking Snowball to fully meet diverse user demands by supporting BTC- and ETH-based bullish investments.
Notably, in loss scenarios, OKX Staking Snowball benefits users by immediately terminating the trade upon knock-in, returning funds on the same day instead of requiring users to wait until product maturity.
In summary, OKX Staking Snowball and the original Snowball each have their strengths and weaknesses, and users can choose based on their individual needs. Every structured product suits specific market conditions, so selection is crucial.
Tutorial Guide
How to use OKX Staking Snowball? The steps are simple:
1) Open the OKX App and select [Finance] → [Earn] → [Structured Products] → [Staking Snowball]
2) Taking Bullish BTC as an example, select your preferred product based on reference annual yield and term, click [Next] to go to the subscription page. Enter the [Subscription Amount], click [Subscribe], and confirm to complete the purchase.
3) Notes on using Staking Snowball: Staking Snowball is not a principal-guaranteed product. Due to market fluctuations, subscribing to Staking Snowball may result in one of three settlement outcomes (early profit-taking, maximum return, or warning-level settlement). Under warning-level conditions, partial losses may occur, as shown below:
Continuous Innovation
Market volatility is unpredictable. Users can leverage derivative instruments within structured products to hedge specific market risks such as interest rate or asset price risk. Through refined risk management strategies, traders can protect their principal while generating returns.
Structured products are innovative financial instruments that combine underlying assets with derivatives to meet users' specific risk-return preferences. They enhance trading volume and liquidity, boosting market activity. Especially liquid structured products serve as important market tools, improving market efficiency. Since their emergence, structured products have held a significant position in finance due to their flexibility and diversity.
As a leading global cryptocurrency exchange and Web3 technology company, OKX leads the market in structured products, having successively launched Dual Asset, Seagull, Shark Fin, Snowball, and Staking Snowball products. In the fast-changing crypto market, evolving user demands drive platform optimization and innovation. OKX is committed to continuously enhancing its products and services through technological innovation to meet users’ dynamic and diversified needs.
Furthermore, through technological innovation, OKX has not only improved platform performance and security but also met user demand for diverse products and superior experience. In the ever-changing crypto market, OKX strives to ensure every user transaction on the platform is secure, convenient, and efficient.
Continuously meeting broader user needs will be key to the scalability of trading platforms and the crypto industry at large.
Disclaimer
The content of this article is for informational purposes only. This article reflects the author’s views and does not represent OKX’s position. This article does not constitute (i) investment advice or recommendation; (ii) an offer or solicitation to buy, sell, or hold digital assets; or (iii) financial, accounting, legal, or tax advice. We do not guarantee the accuracy, completeness, or usefulness of the information provided. Holding digital assets (including stablecoins and NFTs) involves high risk and prices may fluctuate significantly. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. For your specific circumstances, please consult your legal/tax/investment professional. You are solely responsible for understanding and complying with applicable local laws and regulations.
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