Outperformance Share

Outperformance Share

Elemental only takes a cut from the excess yield we generate above the second-best lending opportunity in the ecosystem. Depositors keep the entire baseline yield; we split half the Outperformance created by our protocol. If we don’t outperform, we take nothing. This ensures complete alignment - we win only when you do.

The table below illustrates how this works in practice.

	Elemental Lend	Fund A	Fund B	Fund C
Scenario I	8.3%	5.4%	7.8%	7.2%
Scenario II	8.3%	5.4%	7.8%	8.4%

Scenario I

Elemental Lend delivers the highest yield at 8.3%. The next best-performing fund is Fund B at 7.8%.

• Outperformance = 8.3% – 7.8% = 0.5%

• Outperformance is shared 50/50.

• Depositors receive: 8.3% + 0.25% = 8.55%

• Elemental receives: 0.25%

Scenario II

Fund C outperforms Elemental with an 8.4% yield.

• Elemental does not outperform.

• Depositors receive the full 8.3%, with no Outperformance Share deducted.

IMPORTANT: The yield displayed to users on our website already factors in all Outperformance-sharing calculations. The numbers shown here are for educational purposes only - they simply illustrate how Outperformance is determined.