> For the complete documentation index, see [llms.txt](https://docs.wandfi.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wandfi.io/products/yield-vault-v2/product-description/implied-apy.md).

# Implied  APY

The implied APY is calculated as:

$$
Implied APY= \text{Price}(t\_0)^{\frac{1}{T\_{\text{yearstoexpiry}}}} - 1
$$

For example, if $$( \text{Price}(t\_0) = 1.2 )$$ and $$( T\_{\text{yearstoexpiry}} = 0.5 )$$

$$
Implied APY= 1.2^{2} - 1 = 0.44
$$