# Returns Calculation & Distribution

#### **Yield Calculation Process**

1. Strategy Performance Measurement: Daily assessment of the box spread strategy returns
2. Fee Deduction: Protocol fees (10% to insurance fund, 10% to treasury) are deducted from gross yields
3. Net Yield Distribution: Remaining 80% of yields flow to msY holders through exchange rate appreciation

#### **Distribution Mechanism**

* Exchange Rate Updates: The msUSD to msY exchange rate updates continuously as yields accrue
* Automatic Compounding: Yields compound automatically without requiring user action
* No Manual Claims: Users benefit from yield simply by holding msY tokens

#### **Distribution Timing**

* Strategy Execution: Yield generation occurs continuously through active trading
* Rate Updates: Exchange rates reflect accumulated yield on an ongoing basis
* Performance Assessment: Monthly performance reviews ensure consistent yield delivery

#### **Yield Transparency**

Users can track yield performance through:

* Real-time exchange rate monitoring on our dashboard
* Historical performance data and analytics
* Monthly performance reports
* Live strategy performance metrics

#### **Risk Considerations**

Yields are variable and depend on:

* Options market conditions and volatility levels
* Strategy capacity and scaling effects
* Market liquidity and execution efficiency

{% hint style="warning" %}
Historical performance does not guarantee future results. All yield projections are estimates based on backtesting and current market conditions.
{% endhint %}


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