One of the most important and confusing points of Binance Earn, especially with stablecoins like USDT, is the following: What Binance shows as a high APR is actually a rate for a small portion of your investment. The clearest way to understand it is to think of Binance's APR as a system of "ladders" or "levels". Each level has its own percentage. You are not paid the highest rate for the entire amount, but rather each part of your money earns at a different rate. This is how the APR works in tiers (Tiered APR). Imagine you want to deposit 1,000 USDT in Flexible Savings. Binance shows you an advertised rate of 12%, but if you read the fine print, you will see that this rate only applies to the first 200 USDT. This is what happens with each part of your 1,000 USDT: * Level 1 (up to 200 USDT): This part of your money earns the highest APR, for example, 12%. * Level 2 (from 200.01 to 1,000 USDT): The money you have in this range receives a much lower rate, for example, 2%. * Level 3 (above 1,000 USDT): If you deposit more than 1,000 USDT, the additional money will only earn the base rate, which could be as low as 0.5%. Practical example to see the difference Let's use the 1,000 USDT we mentioned. If you were not aware of the tiered system, you might think your annual earnings would be: 1,000 × 12% = 120 USDT But this is incorrect. The actual earnings are calculated by summing the earnings from each level: * Earnings from Level 1: * Amount: 200 USDT * Rate: 12% * Earnings: 200 x 0.12 = 24 USDT * Earnings from Level 2: Amount: The remaining 800 USDT (1,000 - 200) * Rate: 2% * Earnings: 800 x 0.02 = 16 USDT Total Actual Annual Earnings: 24 + 16 = 40 USDT As you can see, the actual earnings ($40) are much lower than what the advertised rate might suggest ($120). The highest rate you see on Binance is not a percentage that applies to all your capital, but only to the first portion. The product details provide the structure of tiered APR to make an investment decision.