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# Fixed APY

Annual Percentage Yield

Annual Percentage Yield is abbreviated as APY. By factoring in the effect of compounding interest, you can calculate the real rate of return on your principal. In the case of Krios, your $KRI tokens represent your principal, and compound interest is calculated on every Rebase event (every 12 minutes), which is referred to as 'LIGHT-YEAR' in the Krios protocol.

Your new principal amount is equal to the sum of your current $KRI token and all obtained reflections. Your next rebase rewards are calculated using this total amount.

**Compound Interest's Power**- It's important to remember that your balance will grow exponentially rather than linearly over time. Using a compound interest rate of 0.02% percent / 12 minutes.

Last modified 9mo ago