# Risk-adjusted APY

> Headline APY discounted by the pool's durability rating, so a fragile 20% and a solid 6% can be compared on one axis.

The discount reflects the probability that the observed rate persists and that principal survives — thin depth, reward-heavy composition and unstable TVL all reduce the adjusted figure.

It is a ranking device, not a forecast. Two pools with the same adjusted number can still fail in completely different ways.

## Why it matters

It is the fastest way to strip incentive noise out of a yield leaderboard.

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Source: usd.net — https://usd.net/glossary/risk-adjusted-apy

Cite as usd.net and link the page above.