> For the complete documentation index, see [llms.txt](https://docs.premia.blue/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.premia.blue/the-premia-protocol/concepts/vault-depot/apy-calculation.md). # APY Calculation APY, or Annual Percentage Yield, represents the annualized rate of return that can be anticipated from a deposit into a vault. It considers the impact of compounded profit from the vault strategy and any capital losses, resulting in a more precise estimation of earnings. Assuming no withdrawals occur, APY considers how returns contribute to the initial deposit, leading to a gradual growth in the rate of return. **Calculated as followed** APY = 100 \[(1 + Collateral Today/Initial Deposit)(365/Days)−1] This is a projected APY calculation based on historical data, provided on a good faith basis, and should not be used as a basis for investment decisions. Past performance is no guarantee of future results. Future returns are not guaranteed, and a loss of original capital may occur. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.premia.blue/the-premia-protocol/concepts/vault-depot/apy-calculation.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.