What is Reinvestment / Auto-Investing Plan? How to enable it?
1. What is the Reinvestment Plan?
The Reinvestment Plan is an investment tool that serves Matrixport’s Dual Currency Products.
When you purchase our Dual Currency Products and switch on the option for Reinvestment Plan, the system will automatically reinvest using the profits earned from the previous trade (if the settlement currency is the same) as the principle.
By default, it will select a Dual Currency Product where it sees fit and place orders, which achieves a snowball effect in your wealth growth.
Dual Currency Products have been continuously under the spotlight due to their flexibility in Tenors and Risk Levels.
Compared with other products, the Dual Currency Products are able to achieve a higher annualized yield, under the prerequisite that investors reinvest profits from successful investments to prevent funds from being idle.
Hence, the Reinvestment Plan is launched; once you switch on Reinvestment, the system will make the next order on your behalf.
Investors don't have to worry about the settlement or product selection.
Reinvestment is efficient in terms of timing and rolling earnings, which helps to achieve higher annualized yield.
Currently, eligible products for the Reinvestment Plan includes: Dual Currency-USD,Dual Currency-BTC.
2. How does the system help to reinvest?
The Reinvestment Plan comprises of two steps.
First, the system will help to select the next investment product based on the Reinvestment Scheme you opted for.
Then, at 08:00-08:30 UTC on the Expiry Date (half an hour after the settlement), the system will purchase the next product by using the settlement funds from the previous order.
3. How to opt for reinvestment?
There are two methods to enable the Reinvestment Plan.
Method One: on the ordering page of Dual Currency Products, select [Auto-Invest] at expiry.
Once you checked the box, you need to decide on your reinvestment scheme (just tell us your preference - whether you are a robust investor or a proactive one), then carefully read and agree to the agreement. Automatic Reinvestment will then be enabled on your order.
Method Two: select an active order from your Order History and turn on [Auto-Invest] in the order details page.
If it is your first time using Automatic Reinvestment, you will need to select the investment scheme. Read and agree to the agreement and automatic reinvestment will then be enabled.
4. How to set my reinvestment scheme?
The Reinvestment Scheme is to guide the system in selecting a suitable product based upon your risk preference.
Two Reinvestment Schemes are currently available:
Stable: Invest in a product that expires next Friday, while the price gap between the Linked price and current market price is around US$500.
Proactiveness: Invest in a product that expires next Friday, while the price gap between its Linked price and current market price is around US$250.
On the product page, we will list the corresponding annualized yield for your reference according to the market information. However, the final profit is subject to the actual result of the order.
5. Can I, at any time, disable the Reinvestment Plan or change the reinvestment schemes?
Yes, you can disable the Automatic Reinvestment Plan, or change the reinvestment schemes.
Deadline: find an active order from the Reinvestment Plan, you can switch on/off or re-select the reinvestment scheme before 08:00 UTC on the Expiry Date.
Your reinvestment status at 08:00 UTC, is the ultimate basis for whether your reinvesting is on or off.
At this time, we’ll assume you agree on Auto-Investing if your reinvestment status is on. Otherwise, Auto-Investing is regarded as ended and the settlement will go back to your account balance at expiry.
Please note that, even if you switch on Auto-Investing, it does not mean the reinvestment will certainly happen. If the settlement currency is different from your investment currency, the system will cancel the automatic reinvestment and the settlement will go back to your account balance.
6. How to stop the reinvestment?
Two ways to end the reinvestment plan: system cancellation or voluntarily exit.
System Cancellation occurs when:
● Dual Currency-USD: the settlement currency is BTC, Auto-Investing ends. That is: long, bought BTC at low .
You can voluntarily exit a reinvestment plan. Please refer to Q5 for details.
7. Why couldn't I apply for the Reinvestment Plan with some of my orders?
Only the products that expire on Friday, are eligible for the Reinvestment Plan. Additionally, the system does not support Reinvestment Plans on orders where the investment principle is higher than 5 BTC or 50,000 USDC.