Payoff scenarios

All Vaults


Investors make money by accruing high APY daily yield payments on their deposited capital.
The accrued yield is paid at the expiry of the 27 day trade regardless of the performance of the markets. Yield comes directly from the options premium paid by market makers who are buying the options as a way to hedge their books, akin to insurance.
At FCN expiry/maturity, investors also receive their initial deposit (aka "principal") back. Note that deposited funds are only partially lent out (80% lent, 20% remain in the Cega smart contract as collateral). The amount of principal returned upon expiry is linked to the performance of the FCN's underlying crypto assets.
An investor's total investment payoff (yield paid / principal invested) from the FCN varies based on market performance at the end of the 27 day trade. Below are the payoff scenarios for each vault available at Cega.