Factors affecting Yield Generation

1. External protocol or investment mechanism: The specific external protocol or investment mechanism used for generating yield may have its own determinants, such as market conditions, service fees, or other factors that impact the yield generated. In our case, Takadao/ZaynFi collaboration will retain 20% of the yield generated on an ongoing basis till the conclusion of the turn group term. The user’s final yield will be 80% of the generated yield. More detail can be found in Appendix 2 to this document.

2. Amount of deposited security: The total amount yield generated is influenced by the amount of ETH collateral deposited by the users who opt-in for yield generation. A larger collateral amount will lead to higher yield, subject to the conditions and performance of the external protocol or investment mechanism.

3. Market and economic conditions: The overall market and economic conditions can impact the performance and yield generation of the external protocol or investment mechanism. Users should be aware that yield generation is subject to market risks and fluctuations.

4. Terms and conditions of the external protocol: The terms and conditions of the external protocol or investment mechanism used for yield generation may have specific requirements, restrictions, or factors that influence the yield generated. Users should familiarize themselves with the relevant terms and conditions.

5. Activity of decentralized exchanges: The yield generation with ZaynFi relies on liquidity provision on decentralized exchanges. The performance and yield are influenced by the level of activity and trading volume on these exchanges. Higher activity and trading volume can potentially lead to increased yield, while lower activity may result in lower yield. Users should be aware that the yield generated is subject to the activity and performance of the decentralized exchanges used by the protocol.

6. Yield awarded in ETH and potential dollar value risk: The yield generated through the protocol is awarded in ETH. It's important to note that the value of ETH can fluctuate relative to the dollar. Therefore, there is a potential risk of a loss in dollar value when converting the received yield and the deposited security to dollars. The value of ETH is subject to market volatility and can experience both upward and downward price movements. Users should be aware of the inherent risks associated with the price volatility of ETH and the potential impact it can have on the dollar value of their ETH.