Using the DeFi Yield & Risk Calculator
Enter your inputs above and compare the result with the worked example. Review the assumptions before applying it to a trade, portfolio or tax return.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Currency (use for all money amounts)
- USD
- Initial deposit
- 1000
- Assumed effective APY (%)
- 10
- Holding period (days)
- 365
- Downside haircut on ending balance (%)
- 20
- Total network and exit costs
- 15
Example result
- Base net value (USD)
- 1,085
- Stressed net value (USD)
- 865
- Base profit or loss (USD)
- 85
- Stressed profit or loss (USD)
- -135
Method and assumptions
Base value = deposit × (1 + APY)^(days ÷ 365) − costs. Apply the haircut to gross value before deducting costs in the downside case. The haircut is a scenario input. It does not measure the probability of contract failure, depeg or loss of access.
How to interpret crypto estimates
Use prices and costs in the same currency. Market observations are venue-specific. Hypothetical returns are scenarios, and historical observations do not predict future prices. These tools provide educational estimates and do not constitute investment or tax advice.
Common question
Does the haircut tell me the likelihood of losing money?
The haircut represents how much of the ending balance is lost in a scenario you specify. The model assigns no probability to that scenario.