Yield Mechanics

Where Does Yield Come From?

Fount strategies are built on the principle of real yield - returns that originate from real-world economic activity, not token incentives or emissions.

Each vault is powered by curated financial strategies managed by professional Yield Curators. These may include:

• Interest income from bonds or credit portfolios

• Dividend payments from ETFs

• Fees or spread revenue from lending or trade finance

• Capital appreciation in the underlying asset mix

📊 NAV-Based Returns

All returns flow into the vault and are reflected in the updated Net Asset Value (NAV) of your tRWA token.

---

How Is Yield Reflected in Your tRWA Token?

Fount uses a share-based accounting system. When you invest, you receive a fixed number of tRWA tokens. Over time, the value of each token increases as returns are earned.

• No need to claim yield - it's automatically reflected in your token balance's redeemable value

• NAV updates are pushed on-chain via the protocol's Reporter mechanism

• You can track performance live in the Fount dashboard

💡 Simple Concept

Your token amount stays the same, but the value it represents grows.

---

Illustrative Example (Simplified)

Action	Value
You deposit	10,000 USDC
Strategy yield	8% annually
After 6 months	Your tRWA token is worth 10,400 USDC*
You redeem	Receive 10,400 USDC (net of fees)

⚠️ Important Note

*This is an illustrative example. Actual yields vary based on strategy performance, fees, and duration.

---

What Affects Your Yield?

Several factors influence the yield you earn through Fount:

Factor	Impact
Strategy Type	Credit vs. fixed income vs. active trading
Duration & Lock-Up	Longer lock-ups may result in higher returns
Fund Size & Allocation	Larger vaults may access better terms
Market Conditions	Interest rate shifts, credit spreads, volatility
Platform & Manager Fees	Yield is reported net of all fees

📊 Transparent Reporting

Yield performance is net of all fees and is transparently reported within each vault's data dashboard.

---

Fees and Transparency

Each strategy clearly discloses:

• Vault management fee (platform + Yield Curator)

• Performance fee, if applicable

• Redemption or early-exit fees for specific vaults

🔍 Full Transparency Promise

Fount prioritizes fee transparency and ensures all returns shown are net, not gross or theoretical.