Covered Gain

Covered Gain

Covered gain is a strategy within Dual Investment that allows you to earn yield while waiting to sell your crypto at a higher target price.

What it is

When you use covered gain:

  • You select a target price above the current market price.

  • If the target price is reached on the settlement date, your crypto (and the interest earned) is sold at that price.

  • If the target price is not reached, your crypto is not sold, but you still keep the interest earned.

This strategy is useful if you're willing to sell your assets — but only if the price is right.

Why use covered gain?

💬 Covered Gain lets you generate passive yield while waiting for a better selling price — instead of simply holding your crypto idle.

It's especially useful for traders or investors who:

  • Are not in a rush to sell

  • Want to earn additional return during market consolidation

  • Have a clear target price in mind

What happens on the settlement date?

  • If the market price > target price:

    • Your crypto is sold at the target price.

    • The order is closed, even if auto reinvest is enabled.

  • If the market price ≤ target price:

    • Your crypto is not sold.

    • If auto reinvest is enabled, Loopring will attempt to subscribe you into a new product with the same terms.

Example: covered gain in action

You subscribe to a covered gain product with:

  • Token: ETH

  • Target Price: 2,000 USDT

  • Settlement Date: 3 days from now

On the settlement date:

  • If ETH = 2,050 USDT → Your ETH is sold at 2,000 USDT, and you receive interest.

  • If ETH = 1,950 USDT → Your ETH is not sold, but you keep the yield. Auto reinvest may resubscribe you into a new cycle.

Additional notes

💡 Covered gain only applies to sell-side Dual Investment products. For buy-side products, the strategy and logic differ slightly.

You can disable auto reinvest at any time if you no longer want to remain in the position.

🔗 Quick Access

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