# Fractality's Investment Methodology ## The Goal Fractality's Yield Vault seeks to deliver high yield (\~20%) to users with limited risk (drawdown of \~2%) and low costs (no need for high-frequency trading). ## Investment Instruments We focus on Defi. The income sources are categorised into: * Mining/Staking * Borrowing/Lending * DEX and Liquidity providing * Speculation The Fractality Yield Vault utilizes the first three categories to generate yield. As for pure speculation, we believe users can effectively manage it themselves through proper research. ## Methodology Fractality aims to deliver high yield with low risk and low cost by effectively addressing the trade-off between: * DEX and Liquidity Providing: This category offers higher yields (\~20% or more) but comes with high market risk or impermanent loss. * Borrowing/Lending: This category generally provides lower yields (\~5% to 10%), but with lower risk and higher liquidity, supporting real-time withdrawals. Our approach includes both macro and micro-level analysis to select the most suitable chain and protocol, along with quantitative analysis to hedge downside risks. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://fractality.gitbook.io/fractality/fractalitys-investment-methodology.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.