Skip to main content

​
Commitment

Each Thaler tier advertises a yield floor alongside its APY range. The floor is the minimum realised return the protocol commits to pay on a full-year hold of the vault. It is shown:
  • Next to the APY range on the Strategies page.
  • On every tier card in the Create Vault selector.
  • Under the strategy summary on the My Vaults dashboard.
Higher-tier vaults run at higher leverage on the hedge and carry more variance, but the floor moves up with the tier so the commitment stays meaningful at every level.

​
Derivation

The protocol does not select the floor arbitrarily. It is derived from the V12 walk-forward backtest of the strategy across the full live history of the supported venues.
1

Run the strategy over every twelve-month window

For each tier, simulate the realised payout assuming the user closes after a full year.
2

Collect the end-of-window returns

Build a distribution of realised returns across every starting date in the dataset.
3

Take the worst observed return

The lowest realised return in the distribution sets an upper bound on the floor.
4

Apply a safety margin

The floor is set below the worst observed return so a year slightly worse than any historical year is still inside the commitment.
The floor is not a forward projection. It is a backward-derived commitment designed to hold even if the next year is worse than any past year on record.

​
Payout mechanics

When a vault closes and the realised return is below the floor, the protocol reserve covers the gap. The user receives at least the floor amount, net of the service fee. If the realised return exceeds the floor, the user receives the realised return. The floor is a lower bound, not an upper bound. Nothing about the yield floor caps the upside. The formal payout rule:
where floor_amount = deposit × floor_apy × (holding_days / 365). For a 2 SOL deposit on the Balanced tier (floor 7.3 %) held for a full year, the floor amount is 2 × 0.073 = 0.146 SOL.

​
What can break the floor

Two scenarios are explicitly outside the floor: After day 96 the penalty is zero. The floor applies in full and there is no offset.

​
Why a floor rather than a fixed APY

A fixed APY would imply the protocol can guarantee the exact return regardless of market conditions. That would require either:
  • Stripping the variable upside (the user gets exactly the fixed rate even when conditions are excellent), or
  • Promising more than the protocol can sustainably deliver.
A floor preserves the variable upside the strategy actually produces and commits the protocol to a tested lower bound. Users participate in the realised yield above the floor and are protected below it.

​
Relationship to principal protection

Principal protection and the yield floor are separate commitments. Principal protection ensures the user receives at least the deposit back. The yield floor ensures the user receives at least the floor return on top of the deposit. In the worst supported case the user receives deposit + floor. In the best case the user receives deposit + realised_yield where realised_yield is the strategy’s actual performance.

​
Next read

Principal protection

The deposit-side guarantee that pairs with the yield floor.

Risk disclosure

The residual risks that neither protection nor the floor covers.