FAQ

What is the source of yield for N-Vaults? Fixed-Yield (Principal Tokens) by Pendle Finance and structured options strategies.

What is a zero-coupon bond? A zero-coupon bond is sold at a discount to its face value and does not pay periodic interest. Instead, the investor receives the full face value at maturity, with the return being the difference between the purchase price and face value. How is the APY range for N-Vault calculated? The estimated APY range reflects the minimum annualized yield from earning all scheduled coupon payments (lower end of the range) and the potential addition of the annualized best-case scenario payout from the structured options strategy (upper end of the range).

Why is there a block size for early withdrawals? The block size is required due to the limitations associated with unwinding the structured options strategy before maturity. It is designed to align with the contract sizes of exchanges and/or the minimum trade size required by market makers.

Why are early withdrawals not 100% Principal-Protected? Early withdrawals are not 100% principal-protected because they involve selling assets based on current market prices, which may fluctuate. This can result in losses due to price volatility, unrealised option value, or liquidity constraints. Full principal-protection only applies at maturity. How are estimated APYs determined, and why are they shown as a range (e.g., 5-185%)? Estimated APYs refers to the annualised returns (net of performance fees) of the N-Vault's total returns from coupons and option payouts. The lower end of the APY range represents the base case, which assumes only the guaranteed coupons are received as profits. The higher end reflects the best-case payout scenario, factoring in the maximum return from the options strategy at maturity. [Annualised Return = Total Return × 365/N] where N is the no. of days between the Live and Maturity date.