Q: What is Wirex DUO?
A: Wirex DUO is a digital currency investment product that allows you to earn a fixed return by selecting a pair of cryptocurrencies (e.g. BTC/USDT) and locking in your investment for a set duration (between 12 hours and 7 days). At maturity, your return is paid in either the original currency you invested or its paired currency, depending on the market price at expiry.
Please note: This is not a savings account. Your capital is at risk, and returns are not guaranteed in your base currency.
Q: How does Wirex DUO Work?
A: You select a currency pair and deposit one of the digital assets (e.g. BTC). Your investment is then locked in for a set period, during which you cannot access the funds. The return is calculated using a fixed Annual Percentage Rate (APR), prorated to the duration of the DUO.
At expiry, there are two possible outcomes:
- If the market price stays below or equal to the initial price, you receive your investment and interest in the same currency you deposited.
- If the market price exceeds the initial price, you receive your investment and interest in the paired currency.
Example: If you invest 0.5 BTC in a 12-hour BTC/USDT DUO with a 200% APR, you earn approximately 0.00137 BTC as interest. If BTC rises above the set price, you will receive the equivalent in USDT instead.
Q: What are the benefits of using DUO?
A:
- Fixed APR: You receive a known interest rate if held to term.
- Short durations: Choose terms from 12 to 48 hours for flexibility.
- No additional fees: Wirex does not charge additional transaction or management fees.
However, it's important to understand the risk of receiving your payout in a different currency, which may result in a lower value depending on market conditions.
Q: How to open Wirex DUO?
A: In the Wirex App, go to the ‘Grow’ section, then tap DUO. Select a currency pair, choose the coin you wish to deposit, and pick your preferred duration. After confirming the terms, your position will be created.
At the end of the term, your investment and interest will be returned in either the deposited or quote currency, depending on the market outcome.
Q: Wirex DUO fees and APR?
A: No, Wirex DUO does not charge setup or management fees. The return is based solely on the fixed APR, the duration, and the amount invested.
However, the product involves currency conversion risk and may result in receiving a different currency than you invested. Wirex retains a spread when converting between currencies, which may impact your total return.
Q: Is there any risk involved with Wirex DUO?
A: Key risks include:
- You may receive your return in a different currency, which could be worth less than your original investment.
- If the value of the payout currency declines after conversion, this may result in a loss.
- Digital assets are highly volatile. Market movements could affect the value of your return, even with a fixed APR.
- Your funds are locked during the DUO term and cannot be withdrawn early