> For the complete documentation index, see [llms.txt](https://docs.elemental.fund/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.elemental.fund/elemental-lend/protocol-architecture/outperformance-share.md).

# 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.

{% hint style="info" %}
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.
{% endhint %}


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