Additional deposits can disguise the actual result of a vault position.
When tracking Haedal Lending Vault, a larger wallet balance does not by itself show profit. Separate strategy returns from capital you contributed.
An illustrative position begins with 1,000 units of the deposit asset, receives another 500 units, and finishes with a redeemable value of 1,520 units. The accounting gain is 20 units before unrecorded costs. Dividing 520 by the initial 1,000 would incorrectly report a 52% return.
For positions with several deposits or withdrawals, record each cash flow and its date. A money-weighted calculation evaluates your actual investment experience; a time-weighted calculation helps compare strategy performance while separating external flows.
Vault shares make a position easier to hold, but careful bookkeeping still matters. Track shares, conversion value, deposits, withdrawals and costs in a consistent reporting unit.
For traders following $HAEDAL, this discipline helps distinguish strategy income from increased exposure to the $SUI ecosystem.
Illustrative figures only. NFA.
#HAEDAL #Haedal @HaedalProtocol
When tracking Haedal Lending Vault, a larger wallet balance does not by itself show profit. Separate strategy returns from capital you contributed.
An illustrative position begins with 1,000 units of the deposit asset, receives another 500 units, and finishes with a redeemable value of 1,520 units. The accounting gain is 20 units before unrecorded costs. Dividing 520 by the initial 1,000 would incorrectly report a 52% return.
For positions with several deposits or withdrawals, record each cash flow and its date. A money-weighted calculation evaluates your actual investment experience; a time-weighted calculation helps compare strategy performance while separating external flows.
Vault shares make a position easier to hold, but careful bookkeeping still matters. Track shares, conversion value, deposits, withdrawals and costs in a consistent reporting unit.
For traders following $HAEDAL, this discipline helps distinguish strategy income from increased exposure to the $SUI ecosystem.
Illustrative figures only. NFA.
#HAEDAL #Haedal @HaedalProtocol