Leveraged Yield Farming

1. Equity Value

The asset a farmer has supplied on this farming position through ATE Finance.

2. Leverage

Farmers can choose different leverage times when opening positions while different leverage ranges available for different trading pair. ATE Finance supports up to 10x leverage.

Leverage = (Debt + Equity) /Equity

3.Yield Farming APR

Farmers opens position through ATE Finance to farm PancakeSwap or Biswap Pools, can firstly get CAKE or BSW rewards.

Let’s take an example with PancakeSwap Pool.

The Yield Farming APR represents how much CAKE they could earn（without consideration of compounding）

Yield Farming APR= Annual output value of CAKE/total value locked in farming pool

4.Trading Fee APR

This is the another yield generating. In addition to CAKE rewards, PancakeSwap returns to the liquidity provider 68% (0.17%) of the trading fee (0.25%) paid by the each transaction.

5.ATE Rewards APR

ATE token rewards is allocated based on the position value of the farmer.

ATE Rewards APR = Annual output value of ATE/Total value locked in farming pool

6.Borrowing Interest

The annualized interest for borrowing funds from ATE Finance Bank when the farmer opens a leveraged. See Interest Rate Model.

Borrowing interest is determined by the triple-slope interest rate model as detailed below.

Utilization Range	Interest rate at min. range	Interest rate at max. range	m	b
0%-75%	0%	20%	0.267	0
75%-90%	20%	20%	0	0.2
90%-100%	20%	150%	13	-11.5

Borrowing Interest = m * utilization + b

7.Total Farming APR

Total APR for participating in leveraged yield farming.

Total Farming APR=Yield Farming APR+Trading Fee APR+ATE Rewards APR - Borrowing Interest

8.Daily APR

Daily APR is calculated by dividing the APR by 365 days

Daily APR= APR/ 365

9.APY (compounding interest)

APY is the annual yield once you factor in compound interest. It's a standard evaluation of return based on one year. APY is used to estimate your annual earning when you keep compounding your yield received. To learn more details about the calculation here.

APY=（1+APR/365）^365 -1

Note: ATE Finance applies the compounding every 8 hours, which means actual APY caculation could be a little higher than that based on daily frequency.

10. Swap fees, Price impact and Slippage

Swapping may happen when you open or close a position. Assume that you want to open a 3x leverage position, you supply $100 in BUSD and borrow $200 in BNB, to form the trading pair it will need convert part of your BNB to BUSD, you will need the platform swap for you.

1. Trading fee is charged at a fixed rate by Dexs, which is 0.25% on PancakeSwap and 0.1% on Biswap, subject to the latest rules.

2. Price impact and slippage is affected by trade size and the scale of the liquidity pool, subject to actual conditions.

3.Please be aware of a potential large price impact when opening a large position.

11. Debt ratio, Liquidation threshold and Risk ratio

Debt ratio=Debt value/ position value

Liquidation threshold is the upper limit for Debt ratio, a liquidation will trigger when the debt ratio goes above the threshold.

Risk ratio =Debt ratio/Liquidation threshold

See details about liquidation.