> For the complete documentation index, see [llms.txt](https://docs.ts.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ts.finance/protocol-mechanisms/alpha-market/dual-investment.md).

# Dual Investment

When you deposit USDT or tokens, you provide liquidity to option buyers — you become an option seller:

* Long (Buy Call Option) buyers need to borrow token liquidity from you to open their long positions.
* Short (Buy Put Option) buyers need to borrow USDT liquidity from you to open their short positions.
* As an LP (Liquidity Provider), you receive the premium they pay plus reward points.

### Scenario 1: Deposit USDT to provide liquidity

**What You do:** \
You deposit USDT into a Dual Investment Vault when your market view for a token is bullish or neutral (consolidating).

**Yield sources (reflected in APY):**

* Premiums paid by option buyers 
* Daily points rewards (Points rewards may vary due to official events/campaigns; please refer to the latest display on the leaderboard.)<br>

**Asset outcomes at maturity:**

* 📈 MarketPrice > Strike Price → You keep USDT + premium
* 📉 Market Price < Strike Price → Your USDT is converted into tokens at the Strike Price (Effectively, you are buying the token at the Strike Price) + premium<br>

**`Conceptual understanding:`**\
You are providing liquidity for put options. If the market price falls below the strike price, your USDT will be converted into tokens at the strike price.

**`Risk disclosure:`**\
You are exchanging the risk of “token price declining” for “guaranteed premium income.” If the token price drops significantly, you still earn premiums, but your USDT buys tokens at a price above market, bearing all downside.

However, if you are bullish on the token's long-term prospects, this is equivalent to utilizing the Dual Investment Vault’s mechanism to "buy the dip" at the Strike Price when the price falls.

### Scenario 2: Deposit Tokens to provide liquidity

**What You do:** \
You deposit the token into the Vault when your market view for a token is bearish or neutral (consolidating).

**Yield sources (reflected in APY):**

* Premiums paid by option buyers&#x20;
* Daily points rewards (Points rewards may vary due to official events/campaigns; please refer to the latest display on the leaderboard.)<br>

**Asset outcomes at maturity:**

* 📈Market Price > Strike Price → Your tokens convert into USDT at Strike Price (Effectively, you are selling the token at the Strike Price) + premium
* 📉 Market Price < Strike Price → You keep your tokens + premium<br>

**`Conceptual understanding:`**\
You are providing liquidity to call options. If the market rises, your Tokens will be converted into USDT at the strike price.

**`Risk disclosure:`**\
You lock in premium income at the cost of giving up upside beyond the Strike Price. Your risk is opportunity cost.\
\
However, if you consider the Strike Price a satisfactory exit price, you are effectively utilizing the Dual Investment Vault’s mechanism to pre-set a "Take Profit" selling price for your token.

**Warning:**

Dual Investment Vaults carry higher risk.Your assets may be converted if the vault's strike price is reached. Additionally, if the vault lacks sufficient liquidity, you may need to wait till maturity to withdraw your funds. Please review these conditions carefully and ensure you are comfortable with the associated risks before depositing.


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