For short deposit periods, APY should not be interpreted as the actual return.
Traders evaluating the Haedal Lending Vault should distinguish between an annualized metric and the return earned over their actual holding period. For example, assuming a steady 10% APY, the 7-day return would be approximately 0.183%. This is an example calculated using the compound interest formula and does not represent the vault’s current yield.
Actual results are affected by fluctuating lending rates, incentives, fees, and entry and withdrawal costs. The shorter the period, the larger a share of the return those costs may account for.
Your evaluation should also match your holding period. Compare the initial value with the final amount recovered per unit of deposited assets, and account separately for any additional deposits or withdrawals made along the way. When annualizing results from a short period, also consider the assumption that the return will continue to repeat.
When using the $HAEDAL Lending Vault, it is important to make a habit of calculating net returns for your own investment period. The displayed APY is a reference metric, not a guaranteed return.
You are responsible for your own investment decisions.
#HAEDAL #Haedal @HaedalProtocol
Traders evaluating the Haedal Lending Vault should distinguish between an annualized metric and the return earned over their actual holding period. For example, assuming a steady 10% APY, the 7-day return would be approximately 0.183%. This is an example calculated using the compound interest formula and does not represent the vault’s current yield.
Actual results are affected by fluctuating lending rates, incentives, fees, and entry and withdrawal costs. The shorter the period, the larger a share of the return those costs may account for.
Your evaluation should also match your holding period. Compare the initial value with the final amount recovered per unit of deposited assets, and account separately for any additional deposits or withdrawals made along the way. When annualizing results from a short period, also consider the assumption that the return will continue to repeat.
When using the $HAEDAL Lending Vault, it is important to make a habit of calculating net returns for your own investment period. The displayed APY is a reference metric, not a guaranteed return.
You are responsible for your own investment decisions.
#HAEDAL #Haedal @HaedalProtocol