Understanding Vault Metrics
Before depositing into a vault, it’s important to understand the key metrics displayed in the Orion app.
These metrics help you evaluate performance, risk, and suitability for your investment goals.
Total Value Locked (TVL)
- What it means: The total amount of assets currently deposited in the vault.
- Why it matters: Higher TVL can indicate user confidence, but may also mean smaller relative returns if capacity is limited.
Annual Percentage Rate (APR)
- What it means: The projected annualized return based on the vault’s historical performance.
- Why it matters: APR is an estimate - actual returns can vary depending on strategy performance and market conditions.
Asset Allocation
- What it means: The distribution of assets held by the vault.
- In transparent vaults: Visible in real time.
- In private vaults: Confidential.
Rebalancing Frequency
- What it means: How often the vault adjusts its asset allocation to match the strategy.
- Why it matters: More frequent rebalancing can keep the portfolio aligned with its target allocation, but may incur higher trading costs.
Performance History
- What it means: Historical returns and volatility over different timeframes (e.g., 7d, 30d, 1y).
- Why it matters: Past performance can give insight into how the strategy behaves in different market conditions, but is not a guarantee of future results.
Fees
- Performance Fee: A percentage of profits taken by the curator when the vault is profitable.
- Management Fee: An annualized fee taken regardless of performance to cover strategy maintenance.
- Why it matters: Fees impact net returns, so compare vaults accordingly.
Risk Profile
- What it means: An indication of the vault’s risk level based on its asset mix and strategy.
- Why it matters: Choose a risk profile that aligns with your investment horizon and tolerance.
Quick Tip
Always evaluate vault metrics in context - a high APR might look attractive, but consider TVL, risk profile, and historical performance before investing.