What is Bybit Discount Buy? 

Discount Buy is a product that allows users to purchase a specific asset at a predetermined price on the settlement date, which is below the market rate at the time of order placement, should the Settlement Price fall within the Knockout Price and Purchase price.

Who should consider Discount Buy?

Discount Buy is designed for users who wish to ramp up their crypto holdings in bear markets where volatility is on the low side. 

How to understand the key terms of Discount Buy? 

 

How does Discount Buy work?

Discount Buy works in two scenarios: 

 

 

For example, 

 

If Trader A wants to invest 10,000 USDT into BTC using Discount Buy, and the current market price of BTC is 30,500 USDT,

 

Purchase Price = 29,900 USDT

Knockout Price = 31,000 USDT 

 

At settlement date,

• If the price of BTC (Settlement Price) is 30,800 USDT < 31,000 USDT, Trader A will receive 0.334 BTC (worth 10,000 USDT) at the price of 29,900 USDT, and thus making a profit. 
• If the Settlement Price is 29,000 USDT < 29,900 USDT, Trader A will receive 0.334 BTC (worth 10,000 USDT) at the price of 29,900 USDT, and thus incurring a loss. 
• If the Settlement Price is 32,000 USDT > 31,000 USDT, Trader A will receive the initial investment and fee saver payment (8% APR) in USDT. The total payoff is calculated with the formula below: Payoff = 10,000 + 10,000 * 8% * 1/365 = 10,002.19 USDT 

How is the Settlement Price determined?

The Settlement Price is determined by calculating the average price of the underlying Perpetual Contract’s Index Price every second in the 30 minutes leading up to the Settlement Time.

When will my Discount Buy plan take effect?

Your Discount Buy plan will be created immediately after submitting your order. Please check the Order Date (UTC) on the order page for the exact time when the plan takes effect.

 

When will I receive my returns?

You will receive your returns, be it the principal with an additional APR or your desired token, within 15 minutes after settlement. For example, the settlement time is T+1 8 AM UTC. You will receive the returns at 8:15 AM UTC on T+1. For more information, please refer to the information available on the order page.

 

What is the difference between Dual Asset and a Discount Buy?

The key difference is the Investment Outcome:

• Dual Asset will only trigger buy orders if the Settlement Price is lower or equal to the Target Price. 
• Discount Buy enables users to buy at the Purchase Price even when the Settlement Price is higher than the Purchase Price.

Where will my returns be credited? 

Returns will be credited to your Funding Account within 15 minutes at the settlement time.

What is the source of profit from Bybit Discount Buy?

The funds you invested are actively managed by professional third-party investment institutions, engaging in strategic trading like Options and Perpetual contract trading on the Bybit platform. This structured approach not only hedges risks effectively but also aims to generate potential profits for our users.

Which coins are supported on Discount Buy?

Please visit our product page for more information.

Is Identity Verification required for Bybit Discount Buy?

Yes, individual users are required to complete Identity Verification Lv. 1 to purchase Bybit Discount Buy plans. To initiate your Identity Verification, please click here.

 

Do note that users with Business Identity Verification are also able to purchase this product.

Are there any fees associated with Bybit Discount Buy?

There are no fees associated with Bybit Discount Buy.

Are there any investment amount limits?

Yes, there are investment amount limits for Bybit Discount Buy:

 

Minimum Limit: 10 USDT per user per trade.

Maximum Limit: 1,000,000 USDT per user per trade.

Can I cancel or redeem my investment early once it's made?

No, once your plan is created, there is no provision for cancelation or early redemption. 

Can I purchase Bybit Discount Buy plans using Subaccounts? 

Yes, you are able to purchase Discount Buy products using Subaccounts.

What are the risks associated with Discount Buy?

Although the Purchase Price could be below the market price at the time of order placement, it might still be higher than the Settlement Price. In such scenarios, the settlement would continue to be based on the Purchase Price, resulting in a loss for the trader. If the Settlement Price reaches the Knockout Price or beyond, the trader will receive the initial investment plus the Knockout fee saver payment.