The benefits of a DCN are the ability to earn a higher interest than is available in your Ledn BTC Growth or USDC Growth accounts and gain advantage from your market view on BTC.
- By picking future BTC prices at which you’d be happy to buy or sell BTC, you’re able to automate your outlook and either sell at a higher price or buy at a lower price than the existing one when you took your DCN.
- Regardless of the outcome, you’ll earn an interest that is higher than what’s available in the Ledn BTC Growth or USDC Growth accounts, helping you build passive income.
There are risks associated with selling, buying or holding digital assets or entering into a DCN transaction with Ledn. You should understand these risks involved before taking a DCN. Some of the risks associated with a DCN are:
- The amount of BTC or USD you used to take your DCN are locked for the duration of your DCN.
- For a BTC to USD DCN, if the BTC Price at maturity is above the Strike Price, you’ll sell your BTC at a price that’s lower than the BTC Price at maturity.
- For a USD to BTC DCN, if the BTC Price at maturity is below the Strike Price, you’ll purchase BTC at a price that’s higher than the BTC Price at maturity.
- If your DCN amount is converted upon maturity, you may be subject to a taxable event depending on the jurisdiction in which you reside. Please consult a tax professional in your local jurisdiction for advice on proper tax treatment.
For more information, please carefully review the DCN Agreement and its Risk Disclosures.