Are "Undying" CBBCs Really Undying?
Three Truths About No-Expiry Bull/Bear Contracts

First, the basics:
how is this different from an ordinary CBBC?

Ordinary CBBCs have a clear expiry date (typically from six months to a few years) — if you don't sell before expiry, the contract is settled. Their call price is also fixed at issuance and never changes. Undying CBBCs are the opposite on both points:

• No expiry date — in theory you can hold them long-term with no forced settlement when time runs out;
• Daily call-price reset — after each trading day's close, the call price is re-set based on the closing price, keeping a set distance from the underlying asset.

These two features create the feeling that you can just hold the contract and wait for the market to move. But every product design has a price — and the three truths below are exactly what "undying" costs you.

Truth 1: the call price resets daily —
but is that distance really safe?

The call price of an undying CBBC is re-set after the close of every trading day, based on the underlying's closing price, so the contract keeps an approximately fixed percentage distance from the asset (the exact ratio is set by the issuer; around 10% is common in the market). Using the HSI as an example:

In other words, the call price keeps following the market, always maintaining roughly a 10% buffer. It looks very safe on the surface — but this mechanism has one critical limitation: the reset only happens after the close.

Truth 2: "undying" can't stop an intraday crash —
one gap can call your contract

"Undying" precisely means "won't die from expiry or the passage of time" — it does NOT mean the contract can never be called. The key point: during trading hours, the call price is locked at the level set after the previous close; it does not follow the live price.

Back to the example: you hold an undying bull with a call price of 22,500 (set after Monday's close). On Tuesday morning, the HSI gaps down sharply on breaking news and trades below 22,500 — your bull is forcibly called immediately. It will not wait for the close to re-set the line. The so-called "undying" protects against "time", not against "sudden crashes".

Truth 3: the daily funding cost —
the longer you hold, the more it eats

No expiry date does not mean free. The convenience of "no rolling" comes at a price: a daily funding costcharged by the issuer. The fee is deducted from the contract's value every day, much like paying interest on borrowed money.

This directly hits long-term returns: if the underlying asset goes nowhere for a long time — neither up nor down — your undying CBBC will slowly bleed valueas the daily fee keeps being deducted. Only when the underlying's move is big enough to cover the accumulated funding cost does holding long-term actually pay off.

So treating "no expiry" as "free long-term leverage" is a dangerous misconception. Work out the daily fee, think about your intended holding period, and only then decide whether to hold.

So who is this actually for?
Ask yourself three questions

Undying CBBCs are designed for a specific type of investor: someone with a longer-term directional view who doesn't want to sell and re-buy every few months when contracts expire. If that sounds like you, the product can genuinely save you the hassle of rolling.

Before you bet, ask yourself three questions:

• Can I tolerate the daily funding cost continuously eating into my position?
• Do I fully understand that sharp intraday moves still trigger a call — this is not "buy and forget"?
• Is my holding period really long enough for the "no rolling" benefit to show up?

Only if you can answer "yes" to all three should you consider it. If you hesitate on any one of them, an ordinary CBBC — or buying the underlying asset directly — may suit you better.

Decided to buy?
Check these three things first

Summary

Undying CBBCs are an alternative leveraged instrument with "no expiry date and a daily-reset call price". Their biggest selling point is long-term holding without the hassle of rolling. But they come with three costs: the daily reset only happens after the close; sharp intraday moves still trigger a call; and the daily funding cost quietly erodes your position. "Undying" is only true relative to ordinary CBBCs — it protects against time, not against sudden crashes, and you pay rent every single day.

CBBCs (including undying CBBCs) are leveraged products with very high risk and are not suitable for all investors. Before placing a bet, read the terms carefully, assess your own risk tolerance, and consult a licensed professional where necessary.