> For the complete documentation index, see [llms.txt](https://docs.cian.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.cian.app/bondify/for-users-quick-start/user-strategies/yield-buyer.md).
# Yield Buyer
A Yield Token (YT) is the right to the yield a leveraged looping position generates, from the moment you buy until maturity. You pay a fixed cost upfront and receive all the organic yield (and points) the underlying collateral earns over the term. Your downside is capped at what you paid; your upside is uncapped. There's no collateral to manage and no liquidation of your own capital.
For example, pay $1,000 upfront for a 90-day YT. If the position earns $1,800 of yield over the term you collect $1,800, netting +$800; if it earns $600 you net −$400; if it earns nothing you lose the full $1,000 and no more. The cost is fixed, the yield is whatever the position produces.
**Two sources, one price**
YT supply comes from two places, both clearing through the same FIFO queue, first listed, first filled:
* **Loopers** sell the yield rights from an active looping position.
* **SLF** supplies YT from its own capital, but only as a last resort, when no looper order remains in the queue.
The queue fills from looper supply first; SLF is the backstop that keeps YT always available. The price is identical whichever source fills your order, because every listing uses the same formula.
**Why YT is a looping strategy**
When SLF is the source, it opens a looping position at very high LTV (around 95–98%): your upfront payment funds the thin equity and SLF lends the rest. That high-LTV position is what gives you the leveraged yield exposure — a small upfront cost controls the yield of a much larger position. It's the same looping machinery used everywhere in Bondify, just at extreme leverage, which is why YT is a form of looping strategy rather than a separate product.
**Pricing**
Both sources price off one number: the **SLF daily rate** for that pool. This is the protocol's reference borrow rate, quoted per day. A daily rate of 0.020%, for instance, compounds to about **7.57% APY** ((1 + 0.0002)^365 − 1). That is the fixed rate a YT buyer effectively pays: you lock it in at purchase and keep all yield the position earns above it.
A YT's cost is the present value of that rate over the time left to maturity:
```
interest rate = (1 + SLF daily rate)^days − 1
price per YT = interest rate ÷ (1 + interest rate) × oracle
```
where `days` is the whole days remaining plus one for the current partial day. Intuitively, `YT cost ≈ YT amount × SLF daily rate × days × oracle`. The price decays toward zero as maturity nears, since fewer days of yield remain.
**Source doesn't change the price.** The formula's only inputs are the amount, the SLF daily rate, and the time left. None of them depend on who is selling. So a looper-issued YT and an SLF-issued YT of the same size and maturity cost exactly the same: the looper just supplies the yield rights into the queue, and the SLF rate sets the price. At a 0.020% daily rate with 90 days left and a $1.00 oracle, both come out to ≈ **$0.0181 per YT**, identical.
The full worked example is in [Issue Yield Token](/bondify/for-users-quick-start/user-strategies/looper/issue-yield-token.md).
**Buy, hold, resell**
* **Buy** from the queue at the current price.
* **Hold** to maturity to collect the yield the position earns.
* **Resell** before maturity by relisting your YT into the same queue and selling at the going price, exiting early without waiting for maturity.
**Distribution at maturity**
At maturity the protocol settles every underlying position, pools the realized yield, and distributes it to YT holders **pro-rata by holding time × YT balance** — you earn for the portion of the term you actually held. Accumulated rewards (points, airdrops) pass through on the same basis.
The pool is filled differently by source:
* **SLF-sourced:** the protocol unstakes the position, repays SLF the fixed interest owed for the term, and the remaining realized yield goes to the pool.
* **Looper-sourced:** all looping positions are released in bulk; the organic yield each accrued, measured by the collateral's index change between issuance and maturity (the self-increase), is deducted into the pool.
* **Points** accrued by the collateral are distributed on the same basis — pro-rata by holding time × YT balance — but handled off-chain rather than on-chain with the yield settlement.
**Liquidation**
If the collateral's oracle price falls far below its level at issuance, the underlying position can go underwater: its LTV passes 100%, meaning debt exceeds collateral. The YT is then marked liquidated.
* If the price may recover, the protocol evaluates case by case and organic yield keeps accruing in the meantime.
* If the drop is unrecoverable, the YT listing is canceled and the YT value is marked at 0.
**Risks**
* Loss is capped at the upfront cost; there's no liquidation of your own capital.
* Realized yield may come in below what you paid, reducing or erasing profit.
* A YT settles at maturity, though you can resell beforehand to exit early.
* If the collateral depegs unrecoverably, the YT can be marked to 0 (see Liquidation).