APY and Reward Calculations

Every Dual Investment vault offers interest on the subscriber's deposit. 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 you will receive based on the vault direction and Linked Price outcome.

Buy Low (WBTC-USDC)

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

• Linked Price is reached = You receive WBTC at the Linked Price + earned rewards:

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

• Linked Price is not reached = You keep your principal + earned rewards in USDC:

Subscription Amount * (1 + Yield) USDC

Sell High (WBTC-USDC)

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

• Linked Price is reached = You receive USDC at the Linked Price + earned rewards:

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

• Linked Price is not reached = You keep your principal + earned rewards in WBTC:

Subscription Amount * (1 + Yield) WBTC