When considering investing in CoinEx Fixed Savings, the lock-up period is a key parameter balancing returns and liquidity. These periods are not arbitrarily set, but rather designed by the platform based on actuarial models of funding needs, market interest rate volatility, and risk management, offering a range of options from short-term flexibility to long-term stability.
CoinEx Fixed Savings offers a complete tiered spectrum of lock-up periods, with the most common being 7 days, 14 days, 30 days, 90 days, and 180 days. Each period corresponds to a different expected annualized yield (APY), reflecting the fundamental principle of “time value.” For example, using the mainstream stablecoin USDT, a typical yield curve might be: a 7-day product offers approximately 3% APY, a 30-day product rises to approximately 5%, and a 90-day product could reach approximately 6.5%. This design is because longer lock-up periods provide the platform with a more stable pool of funds for longer-term lending or strategy deployment, thus enabling the sharing of higher returns. Data shows that for most of 2024, the average yield of the 90-day product was approximately 2 to 3 percentage points higher than that of the 7-day product.
Choosing different maturities essentially involves a trade-off between liquidity preferences and market expectations. Short-term products of 7 or 14 days are suitable for investors who want to maintain high liquidity and capitalize on unexpected market opportunities. They offer fast turnover, and while the annualized return is relatively low, the compounding effect can still be substantial. For example, if you invest 10,000 USDT in a 7-day product with a 4% annualized return and roll it over for 52 weeks (one year), you could theoretically earn over $408 in interest, with multiple monthly accesses during that period. Conversely, choosing long-term products of 90 or 180 days indicates a relatively stable or bullish view on market interest rate trends over the next few months, a willingness to forgo short-term liquidity to lock in higher current yields, and protection against the risk of declining market interest rates.
An optimal strategy involves combining different maturities to create a “tiered” savings plan that balances returns and liquidity. This is a widely adopted and savvy strategy: assuming you have 30,000 USDT in idle funds, don’t invest it all in a single 180-day product. You can divide your funds into three equal parts of 10,000 USDT and invest them in CoinEx Fixed Savings products with terms of 30 days, 60 days, and 90 days, respectively. When the 30-day product matures, reinvest the principal and interest into a new 90-day product; the same applies to the 60-day product. Repeat this cycle, and starting from the third month, you’ll have approximately one 10,000 USDT product maturing almost every month. This allows you to enjoy the higher yield of long-term products (because each investment is reinvested in a 90-day product) while also obtaining a cash flow similar to monthly liquidity. Historical backtesting shows that this strategy improves capital flexibility by about 15-20% compared to simply investing all your funds in a single long-term product, while sacrificing less than 0.5% in average annual return.
Understanding the non-early redemption characteristic of the lock-up period is essential for risk management. Unlike demand deposits, your funds cannot be withdrawn early during the lock-up period of CoinEx Fixed Savings. This is the price for a fixed, high yield. Therefore, before investing, you must ensure that the funds are completely idle for the selected period. The platform sets this rule to match the maturities of its assets and ensure the stability of the entire system. This feature requires investors to engage in more rigorous personal financial planning to avoid being forced to interrupt their investment plans due to unforeseen needs. A practical suggestion is to allocate only 20%-30% of your total crypto assets to fixed-term savings products, spread across different maturity dates, while keeping the remaining funds liquid to cope with opportunities and risks.