Performance Metrics
Two of the most important columns are Leader Performance (LP) and Depositor Performance (DP). This page explains exactly how they are calculated and how you can customize the grading thresholds.
LP and DP grades are available on all plans Free. Customizing the grade thresholds in Settings is also available on all plans.
The goal
Section titled “The goal”The performance grade system answers one question:
Given a leader’s or depositor’s actual returns, how good are they on an annualized basis?
It normalizes different investment periods (some depositors have been in a vault for 10 days, others for 10 months) into a comparable annualized percentage, then maps that percentage to a letter grade.
Leader Performance (LP)
Section titled “Leader Performance (LP)”Step 1: Find the leader’s data
Section titled “Step 1: Find the leader’s data”For each vault, the app looks up the leader’s record: how much total PnL they’ve earned, how much equity they have in the vault, and how many days they’ve been in it.
Step 2: Calculate initial equity
Section titled “Step 2: Calculate initial equity”Initial Equity = current_equity - all_time_pnl
This reverses time — it estimates how much the leader originally deposited. For example, if a leader has $110K equity and $10K all-time PnL, their initial equity was $100K.
Step 3: Calculate PnL percentage
Section titled “Step 3: Calculate PnL percentage”Leader PnL% = all_time_pnl / initial_equity
Using the example above: $10K / $100K = 10% total return.
Step 4: Annualize
Section titled “Step 4: Annualize”Leader Annualized PnL = Leader PnL% × (365 / days_leader_has_been_following)
If the leader has been in the vault for 100 days:
10% × (365 / 100) = 36.5% annualized
Step 5: Map to grade
Section titled “Step 5: Map to grade”A+ → annualized ≥ 100% A → annualized ≥ 33% B → annualized ≥ 5% C → annualized ≥ 0% D → annualized > -10% D- → annualized ≤ -10%
A 36.5% annualized return maps to grade A (Outperforming).
Depositor Performance (DP)
Section titled “Depositor Performance (DP)”DP follows a similar process, but averages across multiple depositors:
Step 1: Qualify depositors
Section titled “Step 1: Qualify depositors”Depositors must meet all three criteria to be included:
- Days in vault ≥ 30 — need enough data to be meaningful
- Equity ≥ $100 — trivial amounts are excluded
- Share of TVL ≥ 1% — must be a meaningful depositor
Step 2: Take the top 5
Section titled “Step 2: Take the top 5”Among qualified depositors, the app takes the top 5 by equity size.
Step 3: Calculate each depositor’s PnL%
Section titled “Step 3: Calculate each depositor’s PnL%”For each depositor: Initial Equity = equity - all_time_pnl PnL% = all_time_pnl / initial_equity
Step 4: Average them
Section titled “Step 4: Average them”DP = average of top 5 depositors’ PnL%
Step 5: Same grade thresholds as LP
Section titled “Step 5: Same grade thresholds as LP”What the grades mean
Section titled “What the grades mean”A+ — Superstar
Section titled “A+ — Superstar”Annualized return of 100% or more. These are exceptional performers. Be cautious — extraordinary returns often regress to the mean. Check how long the vault has sustained this performance.
A — Outperforming
Section titled “A — Outperforming”Strong, attractive returns. An A grade over 6+ months is a solid signal. These vaults are worth serious consideration.
B — Performing
Section titled “B — Performing”Positive but modest returns. B grades are the baseline for a vault that’s “working.” Combined with low drawdown, B-grade vaults can be excellent risk-adjusted choices.
C — Neutral
Section titled “C — Neutral”Positive but below the Performing threshold (default 5%). Not losing money, but not making enough to earn a B grade. C-grade vaults may be in a drawdown or the leader may be between strategies.
D — Underperforming
Section titled “D — Underperforming”Losing money. A D grade means negative returns. Some D-grade vaults may recover, but sustained D performance is a warning sign.
D- — Extremely Underperforming
Section titled “D- — Extremely Underperforming”Significant losses. These vaults are destroying capital. Only consider if you have very strong conviction about a turnaround.
Customizing thresholds
Section titled “Customizing thresholds”You can adjust the two main grade thresholds in Settings → Performance:
| Grade | Default Threshold | What it controls |
|---|---|---|
| Performing (B) | 5% | Minimum annualized return to earn a B |
| Outperforming (A) | 33% | Minimum annualized return to earn an A |
For example, if you want stricter grading, set the Outperforming threshold to 50% instead of 33%. The A+ grade stays fixed at 100% or higher, and grades C, D, and D- are not adjustable.
Reading LP and DP together
Section titled “Reading LP and DP together”The real power comes from comparing LP and DP:
| Pattern | Interpretation |
|---|---|
| LP = A, DP = A | Leader and depositors are both winning. Healthy vault. |
| LP = A, DP = C | The leader is making money but depositors aren’t. Possible causes: high commission, recent depositors, or the leader is trading differently with their own position. Caution. |
| LP = D, DP = A | Unusual — leader is losing but depositors are winning. May indicate the leader has a small personal position. |
| LP = D, DP = D | Everyone is losing. Avoid. |
Limitations
Section titled “Limitations”- Grades are backward-looking. Past performance does not guarantee future results.
- Short history = less reliable. A vault with 10 days of A+ performance is less meaningful than one with 6 months of A performance.
- Annualization amplifies short-term noise. A 5% return in 5 days annualizes to 365% (A+). Always check the vault age.
- Commission is not included in LP. LP shows the leader’s raw returns. DP may be lower due to commissions.
Related
Section titled “Related”- Column Reference — all columns explained
- What Is a Vault? — vault fundamentals