> For the complete documentation index, see [llms.txt](https://docs.aperture.finance/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.aperture.finance/docs/legacy-products/terra-classic-delta-neutral-strategy-retired/apr-a-day-by-day-breakdown.md).

# APR: A Day by Day Breakdown

The following shows day by day APR & key fee events for a given mASSET under stable market conditions.

![Note: Actual APR jumps are instantaneous but have a sloped line due to Google graph constraints :)](https://1625763057-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxgY3fQZ4YZGgisqsPOVx%2Fuploads%2Fe46xm00uMc65DCRb0JbB%2F%E6%88%AA%E5%B1%8F2022-04-07%20%E4%B8%8A%E5%8D%889.26.24.png?alt=media\&token=462e8541-9dff-4172-a3ca-3d77b5709dcf)

For illustrative purposes we will look at the first 42 days for a $900 UST investment on mCOIN.

* The following assumes a **Target Collateral Ratio** of 200% 
* The following assumes there is no material price premium or discount between mCOIN & the oracle price 
* The following assumes the short & long farm APR as well as $MIR & $SPEC token price remains constant for first 42 days
* The following also assumes low volatility for mCOIN price for the first 42 days (**volatile assets will trigger rebalances which will eat into APR**)  

![APR calculations are based on 3/29/2022 spot APR rates for the mCOIN delta neutral pool](https://lh6.googleusercontent.com/SB2oZkvGo0K5hNr_aN4Q4j5H5AjazsOv-GLG_HCZKHZbhjsRkDpzsWb-jBJJHwAhtJT51hmCkK6Z3xgis6Xw4OaW-es51uwYG3nSUVh2SHVE7__9RR3vcuX9LFHU-KMRkGUxT-xQlg1t)

Note:

Listed APRs above are proportionally weighted. For example, Anchor Earn at time of publication was \~19.5% but we’re displaying it here as 12.93% to reflect the ⅔ of the investment that is in Anchor Earn.

### **Day by Day APR Breakdown:**

**Day 0:&#x20;**<mark style="color:red;">**-0.16%**</mark>**&#x20;APR**&#x20;

* Immediately upon opening the position you will have a slightly negative balance primarily due to the \~0.3% TerraSwap fee on short sale proceeds & the long position.
* Day 0 = $900 - short sale TS fee - long buy TS fee

![A \~$1.25 Terra gas fee is required to open the position ](https://1625763057-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxgY3fQZ4YZGgisqsPOVx%2Fuploads%2F5vNOVylBzMfhZAmiYDXo%2F%E6%88%AA%E5%B1%8F2022-04-06%20%E4%B8%8A%E5%8D%8811.05.23.png?alt=media\&token=98e05a9e-1553-45fc-b51d-36a300d53d7e)

**Day 1-13:&#x20;**<mark style="color:green;">**+18.28%**</mark>**&#x20;APR**

* Not yet full APR potential, only yield is from short farm (+5.35%) & Anchor deposit (+12.93%). By Day 4 the negative position should be reversed.
* Day 13 Value = Day 0 Value x ((5.35% + 12.93%) \* 13/365)

![](https://1625763057-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxgY3fQZ4YZGgisqsPOVx%2Fuploads%2FKlqqSjnJ3rtPbqa6C79a%2F%E6%88%AA%E5%B1%8F2022-03-31%20%E4%B8%8B%E5%8D%883.15.16.png?alt=media\&token=50734ac4-b2b3-42d0-b232-554966736ef9)

**Day 14:&#x20;**<mark style="color:green;">**+18.28%**</mark>**&#x20;APR -&#x20;**<mark style="color:red;">**Spec Fee**</mark>

* Proceeds from short sale arrive (less the TerraSwap fee from Day 0) & are married with long position to initiate long-farm, spectrum fee incurred
* Day 14 Value = Day 13 Value + 1 Day of Short & Anchor Yield - Spectrum Fee

![](https://1625763057-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxgY3fQZ4YZGgisqsPOVx%2Fuploads%2F4o0wIbxQP5z32mt8B49q%2F%E6%88%AA%E5%B1%8F2022-04-07%20%E4%B8%8A%E5%8D%889.20.38.png?alt=media\&token=f2da029f-92fc-4731-8ed1-95ba55bee7e1)

**Day 15-42:&#x20;**<mark style="color:green;">**39.68% APR**</mark>

* Long-farm is live & thus the DN strategy is running on its full APR potential.
* Day 42 Value = Day 14 Value + Day 0 \* ((5.35% + 12.93% + 21.4%) \* 28/365)

![](https://1625763057-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxgY3fQZ4YZGgisqsPOVx%2Fuploads%2FWo9LBwHQyLUcN2bB0gYr%2F%E6%88%AA%E5%B1%8F2022-03-31%20%E4%B8%8B%E5%8D%883.27.06.png?alt=media\&token=9c73b776-3df9-4ab1-8721-ce81431f93bf)