How are yields generated?
Yields are generated through sales of options contracts that are generated via the protocol.
Unlike many other vaults, PsyFi produces sustainable yields through option strategies.
How are Strike Prices Selected?
PsyFi uses a backtested model to select strike prices such that roughly ~95% of options expire out of the money. Currently for BTC, that model correlates to roughly 15% off spot for weekly expiries. In Delta terms, .03-.07.
I made a deposit into a PsyFi Vault but it still says pending, why is that?
Vault deposits in the middle of the epoch will generate a deposit receipt and remain pending until the start of the next Epoch, currently weekly at 800 UTC. Your funds will automatically start earning yield upon the start of the next Epoch, at which point they will no longer be listed as pending.
If you have chosen to lockup your vault tokens to earn staking rewards, staking rewards will start accruing after your pending deposit is processed.
I made a withdrawal from a PsyFi Vault but it hasn't entered my wallet, why is that?
If withdrawing during an epoch, your withdrawal will generate a withdraw receipt and show under “Pending Withdrawals”. Since your funds are being used to generate options, they cannot be withdrawn until after the current set of options expire after the current Epoch is over.
Amount withdrawn will be paid out automatically to your wallet on the same day after the epoch ends. Currently each epoch ends at Friday 0800 UTC weekly.
Are there any Vault Fees?
V2 Vaults have a fee structure of the following:
- Performance Fee: 10% of total yield returned to the user each epoch is gathered as a performance fee. If the vault returns no yield, there are no performance fees.
- Withdrawal Fee: 0.1% of total assets withdrawn from the vaults is gathered as the current withdrawal fee.
Is PsyFinance Audited?
How Can I Change my Leverage or Transfer Between Vaults without Withdrawing?
In the past users would have to request a withdraw from a vault, wait until the end of the vault epoch, and redeposit into a new vault to change leverage or switch between vaults of the same underlying asset. This process could have taken up to 2 weeks. With the launch of PsyFi's new vault transfer feature, this process happens instantaneously after an epoch ends. Users can find this feature in the Risk tab, under change leverage for leveraged vaults currently.
Change leverage feature for leveraged vaults
Users can select the new leverage they want to transfer their position to and confirm the transaction to have their position updated to the new leverage in the following vault epoch. Note, that leverage does not happen during the epoch which change is requested.
PsyFi Claims to provide transparency to its users, what does that mean?
Transparency is at the core of our mission to empower users with the information they need to make informed decisions about their tokens. Our believe in providing clear, accessible, and accurate information is reflected in the following platform features:
- 1.Risk Section of Vault Cards: To help users understand the performance and risk associated with each vault, we display a dedicated risk section in each vault card. This section includes detailed information on the historical returns of the vault, as well as the current risk level. By presenting this information in a user-friendly format, we aim to enable our users to better evaluate the potential rewards and risks of each investment opportunity.
Risk Section of Vualt Cards
- 1.APY calculation on the vault card info icons: To ensure users have a clear understanding of the advertised APYs (Annual Percentage Yields) associated with each vault, we include an info icon within the vault modal that reveals the exact calculation used to determine the APY. By clicking on this icon, users can see a breakdown of the various factors and inputs used in the calculation, providing a transparent view of the potential returns for each vault.
These APY breakdowns can be found by hovering on the info icon by each APY.
By prioritizing transparency in these ways, PsyFi aims to create an investment platform that users can trust and rely on to make well-informed decisions about their financial future.
I am getting a pop up stating I am in Prohibited Jurisdiction, where can I use PsyFi?
All United States Citizens as well as persons accessing PsyFi from the United States and its territories are prohibited from using PsyFi. All other jurisdictions and nationalities are not prohibited. This is subject to change. If you are within a prohibited jurisdiction and have an existing position, you will be able to withdraw your funds, but not open or manage any existing positions.