# Mechanism

## Rules of Return

A sharkfin product has two parameters that change every week: Price range and APR range. They are adjusted to provide an attractive APR, but also low risk.

**Price range:** *lowerBarrier($)*-*upperBarrier($)*, **APR range:** *lowerApr(%)-upperApr(%)*

At maturity there are two outcomes:

### **1.** Asset price was **always** in the price range:

Annualised Percentage Return (APR) =

*lowerApr*(%) **+** (settlement price **-** *lowerBarrier*)/(*upperBarrier* **–** *lowerBarrier*)\* (*upperApr*(%) **-** *lowerApr*(%))

*return = principal \* APR/365 \* 7 (investment term)*

### **2.** Asset price was atleast once below *lowerBarrier* or above *upperBarrier*:

*return = principal \* lowerApr/365 \* 7 (investment term)*

So obviously the objective is to stay within the price range, the higher the settlement price the higher the APR. Nevertheless, you earn a minimum APR even with the second outcome.

## Risks

Antimatter Sharkfin is principal protected, meaning that you are guaranteed a minimum return equal or more than the initial investment. There is no such concept of liquidation or margin calls. As the money is handled through a smart contract, usual smart contract risks apply. Furthermore, this product is released in Beta.