Good question — this kind of fixed-term on-chain wealth management is very easy to misunderstand, so let’s clear it up precisely 👇
Short answer first ❌
No, the return is NOT simply “all profit as long as price doesn’t fall below 0.5.”
What you’re describing mixes up yield and price risk.
How fixed-term wealth management of $0G
actually works
There are two completely different components:
1️⃣ Fixed yield (this part is fixed)
The APY / APR shown (for example 20%, 40%, etc.)
Is paid in $0G or a related token
Calculated on:
amount deposited
lock-up duration
This part does not change with price
✅ As long as:
you hold until maturity
the protocol doesn’t default
you will receive the promised token amount.
2️⃣ Token price (this part is NOT fixed)
Your real profit or loss depends on the market price at redemption, not when you bought.
Let’s use your example 👇
Example (very important)
You buy at $1
You deposit it into fixed-term wealth management
At maturity:
You receive principal + yield (in tokens)
But:
Final priceResult$1.00Full yield = real profit$0.80Yield partly eaten$0.60Almost breakeven$0.50Likely loss (despite yield)$0.30Heavy loss
So ❗
Even above $0.5, you can still lose money
because the yield may not cover the price drop.
The key formula (simple)
Real profit = token yield − price decline
Yield ≠ protection
Fixed-term ≠ capital guarantee
This is not principal-protected wealth management.
When fixed-term makes sense ✅
It works best when:
You already plan to hold long-term
You believe price will be:
stable
or rising
You want to earn extra tokens while waiting
It does not work well when:
token is highly volatile
unlocks / emissions are coming
market is weak
One sentence to remember
Fixed-term guarantees token quantity, not dollar value.
If you want, tell me:
the APY
lock period
whether rewards are paid in $0G or another token
I can calculate exactly what price level keeps you profitable 📊