How to calculate dual-currency investment returns? Analysis of Gate dual-currency investment return structure.

In the crypto asset market, price volatility is the norm rather than the exception. As of July 6, 2026, according to Gate market data, Bitcoin is at $63,493.8, down 10.73% over the past 30 days and down 33.74% over the past year; Ethereum is at $1,783.44, down 20.92% over the past 30 days and down 31.14% over the past year. When the market lacks sustained one-way momentum, simply holding assets and waiting for appreciation comes with significant time costs and mark-to-market pressure.

More and more investors are turning to another approach: instead of relying on market direction, they transform market volatility itself into a source of returns. Gate Wealth’s Dual Investment products are structured financial products designed based on this logic.

So, where do the returns from Dual Investment actually come from? How is the return structure formed? What is the pricing logic? Let’s break down the return sources and pricing mechanism of Gate Dual Investment.

Dual Return Structure: Option Premiums and Principal Lock Compensation

To understand the return sources of Dual Investment, it is necessary to start from the operating logic of the options market.

The essence of Dual Investment is that investors sell short-term options through the Gate platform. Specifically:

• High sell strategy (invest BTC, set a target price higher than the market price) ≈ Sell a call option (Sell Call)
• Low buy strategy (invest USDT, set a target price lower than the market price) ≈ Sell a put option (Sell Put)

In the options market, option sellers receive a premium (Premium) by selling contracts to buyers. The premium is the fee that the option buyer pays in order to obtain the right to buy or sell the underlying asset at an agreed price in the future, while the seller earns this income by taking on the corresponding delivery obligations.

In simple terms, users act like “insurance providers”: they collect the premium (similar to an insurance premium) and commit to buying or selling the asset at an agreed price in the future. No matter where the market ultimately goes, this premium income is locked in at subscription and is not affected by subsequent price fluctuations.

In addition to option premiums, the return structure of Dual Investment also includes principal lock compensation. After users subscribe, the funds are locked until the maturity date, during which users cannot redeem early or cancel the order. This sacrifice of liquidity itself also forms part of the return—by compensating for locking up funds, the product offers a yield higher than that of conventional wealth management products.

Therefore, the complete return structure of Dual Investment can be expressed as: option premium + principal lock compensation. Together, these two components form the annualized return rate (APR) that users can lock in at the time of subscription.

Pricing Logic: How Volatility Determines the Return Level

The return rate of Dual Investment is not set arbitrarily; it is calculated quantitatively based on the options pricing logic.

Within the options pricing framework, the key variable affecting the premium level is implied volatility (Implied Volatility, IV). Implied volatility reflects the market’s expectation of how much the underlying asset’s future price will fluctuate. The higher the volatility, the higher the option’s time value, and therefore the more expensive the premium.

As a strategy of selling options, the return rate of Dual Investment is positively correlated with implied volatility. When the market expects volatility to increase, option buyers are willing to pay higher premiums to hedge risk, allowing sellers to earn higher returns. Research from Gate Research shows that by executing the Dual Investment strategy on high-volatility trading days, you can achieve an annualized return range of 109%–253% in both bull and ranging markets.

From the product data on the Gate platform as of July 6, 2026, this logic can be observed in practice. Taking the BTC Dual Investment product as an example:

• A product with a term of 5 hours and a target price of $63,500 (compared with the market price: -0.10%) has an annualized return of 359.74%
• A product with a term of 1 day and a target price of $64,500 (compared with the market price: +1.47%) has an annualized return of 594.19%
• A product with a term of 25 days and a target price of $62,000 (compared with the market price: -2.46%) has an annualized return of 38.35%
• A product with a term of 354 days and a target price of $60,000 (compared with the market price: -5.61%) has an annualized return of 12.69%

From the data above, two pricing rules can be distilled:

First, the smaller the gap between the target price and the current market price, the higher the annualized return. This is because the closer the target price is to the market price, the higher the probability of the option being exercised, and the greater the delivery risk borne by the seller—therefore a higher premium is needed as compensation. For example, for the 5-hour term products, the target price of $63,500 (deviation: -0.10%) has an annualized return of 359.74%, while the target price of $62,500 (deviation: -1.67%) has an annualized return of only 17.69%—a stark difference.

Second, the longer the term, the lower the annualized return is usually. This reflects the time-dimension risk diversification effect: the longer the term, the more price paths there are to reach the target price, which increases uncertainty; however, the risk premium per unit of time is effectively diluted. For example, for the target price of $62,000, the 25-day term product has an annualized return of 38.35%, while the 354-day term product has an annualized return of only 19.45%.

Settlement Mechanism: Realizing Returns and Potential Coin Conversion

The Dual Investment return settlement mechanism is built around three core parameters: target price, settlement price, and the maturity date.

The target price is the key reference price set by the user at the time of subscription, and it serves as the basis for determining the final settlement asset. The settlement price is the spot price of the underlying asset on the Gate platform on the product’s maturity date at 16:00 (UTC+8). The maturity date is the date when the product ends and the returns are settled. On the maturity date, settlement is processed, and the principal and returns are automatically distributed to the user’s spot account.

The settlement logic is as follows:

BTC high sell product (user invests BTC):

• If settlement price ≥ target price → repayment in USDT, equivalent to successfully selling BTC at the target price
• If settlement price < target price → repayment in BTC, continuing to hold BTC

USDT low buy product (user invests USDT):

• If settlement price ≤ target price → repayment in BTC, equivalent to successfully buying BTC at the target price
• If settlement price > target price → repayment in USDT, continuing to hold USDT

Regardless of whether the settlement currency changes, the user will receive all the interest locked in at subscription. The actual return is calculated as: Actual Return = principal × annualized return rate × (holding days / 365).

The Dynamic Relationship Between Volatility and Pricing

The return rate of Dual Investment is not static; it dynamically adjusts as the market’s volatility changes. This dynamic relationship is reflected in two ways:

At the product level, the Gate platform continuously updates the listed annualized return rate of each product based on real-time market data—including the current price of the underlying asset, the implied volatility level, the remaining term, and more. The return rate locked in by users at the time of subscription is based on the market pricing at that moment.

At the strategy level, investors can choose their entry timing based on their assessment of the market volatility environment. Research from Gate Research shows that using high implied volatility as a unified entry signal, and locking in higher premiums when volatility expands, can significantly improve overall return efficiency. This strategy logic is especially prominent in ranging markets.

In the current market environment, Bitcoin has moved -7.63% over the past 7 days and -10.73% over the past 30 days; Ethereum has moved -7.38% over the past 7 days and -20.92% over the past 30 days. Both major assets have recently experienced significant price adjustments, and market volatility has increased. From Gate market data, Bitcoin’s lowest price over the past 30 days was $69,950.9 and its highest was $82,828.2; Ethereum’s lowest over the past 30 days was $1,505.26 and its highest was $2,141.78. Wide-range oscillation has become the main characteristic of the current market.

In such a market environment, implied volatility is often at relatively high levels, which means option premiums are more substantial and Dual Investment’s potential return rates also rise accordingly. This is the most direct logical link between volatility and pricing.

Conclusion

The return sources of Gate Dual Investment follow a clear financial logic: option premiums and principal lock compensation together form the dual return structure. Its pricing logic is built on the options pricing framework—the higher the implied volatility, the richer the premium, and the higher the return rate. The degree of deviation between the target price and the market price, as well as the length of the product term, further refine the differentiated return pricing.

From the perspective of the settlement mechanism, Dual Investment automatically determines the repayment currency by comparing the target price and the settlement price—whether or not the currency changes, interest returns can still be received. This mechanism turns market volatility into specific return opportunities, allowing it to exhibit unique product characteristics in non-one-way market conditions.

Understanding the return sources and pricing logic of Dual Investment helps investors more clearly recognize how the product works and its risk-return characteristics. Against the backdrop of heightened market volatility, the inherent logic behind this structured wealth management product is worth a deeper understanding.