> For the complete documentation index, see [llms.txt](https://contact-101.gitbook.io/future/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://contact-101.gitbook.io/future/guides/fixed-apy.md).

# Fixed APY

**APY** is an abbreviation for Annual Percentage Yield. This measures the real rate of return on your principal amount by taking into account the effect of compounding interest. In the case of **FUTURE**, your **$FUTR** tokens represent your principal, and the compound interest is added periodically on every Rebase event (Every 10 minutes), known as an 'Epoch'.  

Your new principal amount is your then current **FUTURE** token amount, plus your new rebase token amount. This total of this amount is then considered the principle calculated for your next rebase rewards. 

Using a Positive Rebase formula, **FUTURE** allows token distribution to be paid directly proportional to epoch rebase rewards, worth 0.018 percent of the total amount of **$FUTR** tokens held in your wallet every 10 minute epoch period. The rebase rewards are distributed to all **$FUTR** holders on each EPOCH (10 minute rebase period). There are a total 52,560 EPOCH in a year.

**The Power of Compound Interest** - It is important to note that your balance will grow not linearly but exponentially over time. Taking a compound interest of 0.01855% / 10 minutes**:**

![](https://2684151094-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FikHcyZWOnFGVX3TWiyGo%2Fuploads%2FZKNiOboYlV19sT4FuKj2%2FAPY.png?alt=media\&token=69d7a0c2-94f2-4026-a011-13a262f6fda2)

#### <mark style="color:green;">**EXAMPLE 1**</mark>**:** If you started with a balance of only 1 **$FUTURE** on day 1, after a year, your balance will have grown to 12,846.15 $**FUTURE**&#x20;

#### <mark style="color:green;">**EXAMPLE 2**</mark>**:** If you started with a balance of only $1,000 on day 1, after a year, your balance will have grown to $1,284,6157.26.