Leveraged Yield Farming

Equity Value

The total amount of funds staked in the liquidity pool through H2O Finance.

2. Leverage

Farmers can choose different leverage times when opening positions while different leverage ranges available for different trading pairst, and the maximum range supports 1-9 times.

Formula: Leverage = (Loan + Principal) /Loan

3. Yield farm APR of CAKE/MDX

Farmers provide liquidity for pools underlying PancakeSwap and MDEX can get CAKE/MDX reward APR, which has deducted the portion for reinvestment reserve.

Formula: Yield farm APR= CAKE/MDX annual output value/farmer's position value

4. Trading Fee APR

In addition to CAKE rewards, PancakeSwap returns 68% (0.17%) of the trading fee (0.25%) paid by the opponent transaction to the liquidity provider.Only PancakeSwap supports this kind of reward.

5. H2O Rewards APR

H2O reward is allocated based on the position value of the farmer.

Formula: H2O Rewards APR = Value of H2O annual output in the pool * Position Propotion/ Position Value

6. Borrowing Interest

The annualized interest rate of borrowing funds from H2O Finance Bank when the farmer opens a position with leverage is determined by the triple-slope interest rate model as detailed below.

Utilization Range	Interest rate at min. range	m	b
0% - 80%	0 - 10%	0.125	0
80% - 90%	10%	0	0.1
90% - 100%	10 - 60%	5	-4.4

Formula: Interest = m * utilization + b