📊 Locked APRs: Risks, Advantages and Opportunities
Locked APRs offer relatively high returns, but require the invested balance to remain locked for a set period. This option can represent an opportunity for profit, but it also carries risks that must be considered.
✅ Main Advantages
✔️ Higher Profitability – Locked APRs generally offer higher rates than flexible options.
✔️ Predictability – If the asset remains stable, the investor can calculate the gains in advance.
✔️ No need for active operations – The investor does not need to trade or make constant decisions.
⚠️ Main Risks
❌ Currency Volatility – If the asset loses value during the locked period, the interest received may not compensate for the drop.
❌ Liquidity – The balance cannot be withdrawn before the end of the period, which can be a problem if you need the money.
❌ Rule Changes – Binance may adjust the APRs and conditions of the offer, making the profitability less predictable.
🔹 Practical Example: 90-Day Investment
Let's consider an investment of 1,000 USDT at a 90-day Locked APR, with an average rate of 12% per year. If the currency remains stable, the yield calculation would be:
APR: 12% per year
Period: 90 days (¼ of the year)
Calculation: (1,000 * 12% * 90) / 365
Estimated profit: 29.59 USDT
📌 Is it worth it?
✔️ If the asset remains stable or appreciates, the investor guarantees a good return.
❌ If the asset depreciates, the return may be compromised.
The available Locked APRs vary over time – some are no longer available and others appear with new conditions.
📢 Have you used this strategy? How was your experience?
