APY and APR Calculations

We do not quote an APY.

APY is meaningful for a product with a rate: a lending market, a basis trade, a staking position. Those earn a spread that is roughly stable over short windows, so annualising a recent window estimates the next one.

A trend-following program has no rate. Its return is directional and its distribution is wide: many small losses funded by a few large gains. A strong month annualises to a figure the strategy will not repeat; a flat month annualises to zero. Either would mislead.

What to compute instead

Return over a stated period, from the change in share price:

return = (sharePrice_end / sharePrice_start) - 1

sharePrice = totalAssets / totalSupply

adjusted for the difference between the 6-decimal asset and the 18-decimal share token. Always show the period next to the number.

If you must annualise

Use a window of at least a year and label it a realised return over that window, not a forward-looking yield. For anything shorter, show the raw period return.

The formula relating a simple rate to a compounded one:

APY = (1 + APR/365)^365 - 1

It does not turn a two-week return into a yield.

Fees are already in the number

Both the management and performance fee are minted as shares at settlement, which dilutes the share price. A return computed from share price is therefore net.

Do not subtract fees again on top of a share-price return.