# 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 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 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`