> For the complete documentation index, see [llms.txt](https://docs.tensor.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tensor.trade/provide-liquidity/what-apy-can-you-expect.md).

# What APY can you expect?

"APY" is a term often used in crypto for staking, yield farms, and all kinds of other activities that pay you a **passive income**.

The [actual definition](https://www.investopedia.com/terms/a/apy.asp) of APY involves compounding, but for the purposes of our discussion we'll keep it simple: if you put in 10 SOL today, what % on top of that 10 SOL are you getting back in a year? +1 SOL = 10%, +3SOL = 30%, +10SOL = 100% (aka double your money).

We'll say this upfront: **it's kinda difficult to calculate the APY for your market-making order upfront** because of the plethora of factors involved. ¯\\\_(ツ)\_/¯

But it's possible to do in **retrospect**. 

## A real-world example ✏️

Let's take this order as an example (real order by a real TensorSwap user):

<figure><img src="/files/JrKTwXlZerMIIEEayzHY" alt=""><figcaption></figcaption></figure>

The numbers we care about:

* They had \~11.5 round-trip trades on their order
* They charge a 5% market-making fee
* Their starting price was between 17 and 19&#x20;

Multiply the 3 and you get 11.5 \* 5% \* (17+19)/2 = **10.35 SOL**. This roughly matches the approx MM profit on that screenshot.

So they:

* invested \~78 SOL + 5 NFTs worth \~18 each = 168 SOL
* received \~10.35 SOL,&#x20;

And thus earned a **return on invested capital of 6.1%** (10.35 / (78 + 5\*18))

Now the question is over what period of time?&#x20;

* It seems from the screenshot that the order has been live for \~2d
* So if the order **continued to buy and sell at the same rate** for an entire year **their APY would be \~1,100%** (6.1% \* 365 / 2).

Now, importantly there are **A LOT OF ASSUMPTIONS** baked into that calculation. The main one is that the order will **continue to buy and sell at the same rate**. What if the market runs away in either direction and the order is depleted? What if traders lose interest in the collection and there are no trades happening?

{% hint style="success" %}
To ensure your order is set up correctly & that you're getting consistent trades follow the advice in [Setting up your Market-Making Order](/provide-liquidity/setting-up-your-market-making-order.md)
{% endhint %}