APY and Reward Calculations

Every Dual Investment vault offers Yield to the Subscribers. For any given vault, the Vault Owner (i.e., Liquidity Provider) sets the Yield percentage for the vault. This percentage is then used to determine the Annualized Percentage Yield (APY).

The APY formula is:

Yield / (Expiry Date - Today ) x 365

The Reward formula is:

Subscription Amount * Yield

The following summarizes the calculation of the total amount the Subscriber will receive based on the vault direction and Linked Price outcome.

Buy Low (WETH-USDC)

In a Buy Low vault, the Subscriber deposited USDC. There are two possible scenarios at the Expiration Date:

• Linked Price is reached = Subscriber receives WETH at the Linked Price + earned yield:

Subscription Amount / Linked Price * (1 + Yield) WETH

• Linked Price is not reached = Subscriber keeps principal asset + earned rewards in USDC:

Subscription Amount * (1 + Yield) USDC

Sell High (WETH-USDC)

In a Sell High vault, the Subscriber deposited WETH. There are two possible scenarios on the Expiration Date:

• Linked Price is reached = Subscriber receives USDC at the Linked Price + earned yield:

Subscription Amount * Linked Price * (1 + Yield) USDC

• Linked Price is not reached = Subciber keeps principal asset + earned rewards in WETH:

Subscription Amount * (1 + Yield) WETH