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Mechanism
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:
Annualised Percentage Return (APR) =
lowerApr(%) + (settlement price - lowerBarrier)/(upperBarrier – lowerBarrier)* (upperApr(%) - lowerApr(%))
return = principal * APR/365 * 7 (investment term)
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.
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.