Forex and Crypto Glossary

Income or rewards associated with depositing, lending or staking an asset, often quoted as an annualised rate. The rate, fees, reward asset and calculation method matter. Additional token units do not guarantee a positive return in your home currency.

Example: A displayed 8% annualised token reward may change tomorrow. Even if units increase, their price can fall, so token rewards and a return measured in your home currency are different.

Keep in mind: Check whether the rate is APR or APY, the reward asset, costs and reward source. Asset price losses can outweigh additional units.

• Read in context: Lending, Borrowing, Collateral and Liquidation

The difference between named yield or rate measures, expressed under compatible period, instrument and currency conventions.

Example: Two invented comparable annual rates of 5% and 2% differ by three percentage points.

Keep in mind: A rate gap is not the total investment return after currency changes, funding costs and product terms.

• Read in context: Relationships that can change