Click here to return to the old website.
FAQ/Introduction/How it works/How does it work?

How does it work?



We currently have 2 types of interest earning products: Simple Saving and Structured Saving products.

Simple Saving:

We pay you interest on the digital assets you save with us at a fixed period of 14, 30 or 90 days. The interest is paid in the original token you've saved with us, regardless of the market price of the token. When you create a new saving, your token is locked for the duration, and the interest is fixed during the saving period.

Creation of new savings and maturing of the savings occur once a day at 07:00 UTC Settlement Time.

Structured Saving:

With the Structured Saving products, we pay you interest on the digital assets you save with us at a fixed period of one-week. When you create a new saving, your token is locked for a period of one week until maturity. The interest rate is set and fixed on the day the new saving is created and the interest is paid upon expiry, along with the initial amount.

Our Structured Saving products are designed for you to take advantage of market swings. You will be able to automatically buy tokens when the market goes down, and sell tokens when the market goes up, all while earning interest.

Because we offer structured saving for crypto assets using derivatives, our interest rates are correlated with market volatility of the asset. This is how we are able to provide our users with higher interest rates.

When you create a Token Structured Saving with us, there are two potential outcomes at maturity. These outcomes are different depending on the structured product.

Token Structured Savings:

Choose from one of the 60+ token selections to create a saving, and then select the underlying stablecoin (USDT, USDC or TUSD). After one-week, the Token Structured Savings have one of the 2 outcomes at the maturity date:

1. If the market price of the token is within +10% (token price at maturity < 110% token price at start) after the one-week period, you get the saving amount + interest, in the original token you saved with us.

2. If the market price of the token is above or equal to +10% (token price at maturity >= 110% token price at start) after the one-week period, you get stablecoin equivalent of both the saving amount and interest, with the original tokens converted at strike price (110% of the value at start) to USDT, USDC or TrueUSD (stablecoins that has a constant value of 1 USD).

Stablecoin Structured Savings:

Our Stablecoin Structured Savings, is a creative and profitable way to earn interest on your stablecoins. Structurally it is the opposite of our traditional Token Structured Savings product.

When creating a new Stablecoin Structured Saving, you first select the stablecoin (USDT, USDC or TUSD) and then choose the underlying token from one of the 60+ token selections. After one-week, the Stablecoin Structured Savings have one of the 2 outcomes at the maturity date:

1. If the market price of the underlying token is within -9% (underlying token price at maturity > 91% underlying token price at start) after the one-week period, you get the saving amount + interest, in the stablecoin you saved with us.

2. If the market price of the token is below or equal to -9% (underlying token price at maturity <= 91% underlying token price at start) after the one-week period, you get underlying token equivalent of both the saving amount and interest, converted at strike price (91% of the value at start) to the underlying token. In other words, you have purchased your chosen token at a 9% discount, all while earning interest!

By using these two types of structured saving products, you will be able to take full advantage of the market volatility, buying when price is cheap and selling when price is high, all the while earning high interest returns.

Settlement and maturity:

Creation of new savings and maturing of the savings occur once a day at 07:00 UTC Settlement Time. The cutoff time for token price calculations and new interest rate for the day are also updated daily at Settlement Time. Prices are calculated from prices at one of the following exchanges: Binance, Bitfinex, OKEX, and Huobi Global.

Please see our video here to learn about how the Structured Saving products work, and tutorials on how to use POKKET.