APR

APR stands for Annual Percentage Rate. It is a measure that, on an annual basis, expresses the return or cost associated with an activity, regardless of how often amounts accrue. Unlike APY, APR does not account for compounding.

In the context of crypto-assets, APR is often used to describe the parameters of programmes such as staking. In these cases, it represents the theoretical annual rate of the rewards set by the protocol.

Rewards are not guaranteed interest: they are variable, depend on the protocol’s rules, the amount of crypto-assets locked by participants, and network conditions, and may decrease or fall to zero. APR helps a user compare different programmes in a standardised way, but it is not a forecast of returns nor a promise of income. It should always be read together with the full conditions of the protocol and the related risks.

Disclaimer: This entry is for information purposes only and does not constitute investment advice, a recommendation or a solicitation to invest.