APR & APY Calculation

All vaults have performance indices, which are started from 1.00 and calculated against deposit tokens (sUSD for Put Selling and sETH for Covered Call), and shares are issued against the index.

Total Projected Yield (APY)

Calculated by getting the average of the past 4 week's annualised performance. Average of past four weeks weekly yield (in the money weeks are excluded)
Let
w1,w2,w3,w4w_1,w_2,w_3,w_4
be the 4 weeks in chronological order.
Let final tokenPrice at end of week
wiw_i
as
fif_i
and start price as
sis_i
​
gi=(fi−si)sig_i = \frac{(f_i - s_i)}{s_i}
yield=(∏i(1+gi))\texttt{yield} = (\prod\limits_{i} (1+g_i))
APY=(1+yield)NumWeeks/4−1 \texttt{APY}= (1 + \texttt{yield})^{\texttt{NumWeeks/4}} - 1
Where
NumWeeks=52.1429\texttt{NumWeeks} = 52.1429
, number of weeks in year.
​
This Weeks's Projected Yield (APY)
It is expected annualised performance for current week if options expire out of money.
It is calculated as
yield=totalPremiumCollectedtotalFunds−1 \texttt{yield} = \frac{\texttt{totalPremiumCollected}}{\texttt{totalFunds}} -1
APY=(1+yield)NumWeeks−1 \texttt{APY}= (1 + \texttt{yield})^{\texttt{NumWeeks}} - 1
Last Week Yield (APY)
It is annualised performance based on last week. Let tokenPrice on last to last friday be
f1f_1
and tokenPrice on last friday be
f2f_2
.
yield=f2−f1f1−1\texttt{yield} = \frac{f_2 - f_1}{f_1} - 1
APY=(1+yield)NumWeeks−1 \texttt{APY}= (1 + \texttt{yield})^{\texttt{NumWeeks}} - 1

Historic Yield (APY)

Annualised average yield from inception (in the money weeks are included).