APY And Reward Calculations

Every structured yield vault offers yield to the vault subscribers. For any given vault, the vault creator (eg; liquidity provider) sets the yield percentage for the vault. This percentage is then used to determine the Annualised Percentage Yield (APY).

The APY formula is:

Yield / (Expiry Date - Today ) x 365

The Reward formula is:

Subscription Amount * Yield

The following summarises the calculation of the total amount the vault subscriber will receive based on the vault direction and linked price outcome.

Buy Low (ETH-USDC)

In a Buy Low vault, the vault subscriber deposits USDC. There are two possible scenarios at the expiration date:

• Linked price is reached = vault subscriber receives ETH at the linked price + yield in ETH:

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

• Linked price is not reached = vault subscriber receives his initially deposited USDC + yield in USDC:

Subscription Amount * (1 + Yield) USDC

Sell High (ETH-USDC)

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

• Linked price is reached = vault subscriber sells ETH at the Linked Price and receives USDC + yield in USDC:

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

• Linked price is not reached = vault subscriber receives his initially deposited ETH + yield in ETH:

Subscription Amount * (1 + Yield) ETH