When your DCN matures, three things happen:
1. The BTC Price at maturity is compared against the Strike Price. There are 2 possible outcomes for each DCN pair:
For a BTC to USD pair:
i. If the BTC Price at maturity is at or below the Strike Price, you’ll receive your original BTC amount back.
ii. If the BTC Price at maturity is above the Strike Price, you’ll receive your BTC converted into USD at the Strike Price.
For a USD to BTC pair:
i. If the BTC Price at maturity is at or above the Strike Price, you’ll receive your original USD amount back.
ii. If the BTC Price at maturity is below the Strike Price, you’ll receive your original USD amount converted into BTC at the Strike Price.
2. Once the outcome is calculated, we’ll deposit the funds into your BTC Transaction or USDC* Savings account.
3. Regardless of the DCN outcome, we’ll deposit the Term return into your BTC Transaction or USDC* Savings account. The Term return is paid in the original digital asset you took your DCN in.
* USD funds will be paid or returned in USDC on a 1:1 basis through your USDC Savings account, subject to certain circumstances in which you may receive your funds back in USD. Find out more details in our Dual Cryptocurrency Note Agreement.