The rate you see on the platform is *APY* (Annual Percentage Yield). You obtain *APY* in full if you hold an asset on your Interest Account and don’t make any withdrawals within a calendar year.

*Annual Interest – Web platform*

We convert *compound APY* to *simple APR* (Annual Percentage Rate) using this math formula to get the daily rate.

**How the calculation works**

We execute all the

*Scheduled*withdrawals at the fixing time of 14:00 UTC.At the same fixing time, we calculate

*Daily Accrual*using the following formula:

*Daily Accrual = Fixing Balance * APR / 365*

**Where:**

*Fixing Balance* is the balance on your Interest Account taken after completing the *Scheduled* withdrawals. The balance should be the minimum amount to receive interest.

*Note: **The Daily Accrual transaction stays at the Scheduled status until the event of the monthly compound.*

*Transactions list – Web platform*

### Monthly compound

We sum up all the scheduled *Daily Accruals *and credit aggregated interest to your **Interest Account** balance (even if you have withdrawn all the funds). Then we calculate further daily accruals based on the new balance of your Interest Account. This combination of monthly earnings gives a compound effect.

*Note:** The payout time is 15:00 UTC on the first day of the month.*

### Use cases samples

**Example #1:**

You deposit €1,000 to your **Interest Account** and hold it for a year without withdrawing funds. 365 days later, you will have €1,103 on your balance without staking **CLT** (a 10.3% rate) and €1,123 with the maximized rate (a 12.3% rate).

**Example #2:**

You deposit €1,000 to your **Interest Account** and hold it for two months (30 days each). Your daily accrual for each day of the first month will be €0.28, which makes €8.4 for a month. Your balance after 30 days is €1,008.4 – this is our new fixing balance. The daily accrual for the second month will be €0.284, which makes €8.52 for 30 days.