> For the complete documentation index, see [llms.txt](https://docs.predict.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.predict.fun/the-basics/yields.md). # Yields Learn how Yield works on Predict: open positions earn interest through Venus Protocol while a market is pending, claimable weekly from your portfolio.
Say goodbye to the days of **wasted capital**. On Predict, your open positions earn yield — meaning that you’ll keep earning while you wait for market expiry. ### Why Does This Matter? Ordinarily, when you open a position on a prediction market, your funds are trapped until a) the market resolves or b) you sell your shares. During this time, they’re not put to work in other ways (e.g., by earning interest in a DeFi protocol or by being used to trade). We call this **opportunity cost**. This may not be an issue for markets that resolve within a couple of days. But what about those that span months or years? Suppose that you purchase $10,000 worth of **YES** shares in January, each priced at 80¢, on whether a candidate will be elected in December. That’s almost an entire year of waiting. If successful, you’ll make a return of 25% ($2,500), which isn’t bad, but it could be better — **and that’s where Predict’s innovation comes in**.
### How It Works You may have noticed the **Yield** badges on the **Markets** page. They mean that **the market’s open positions are currently generating yield**. This is achieved via our partners at Venus Protocol’s decentralized money market, where all USDT collateral is routed to earn interest. The result? Your funds generate yields around the clock — **even when deployed**! ### How to Claim Your Yield Yield (if available) can be claimed via the **Portfolio** page. ### How Often Can I Claim My Yield? Yield is distributed weekly. ### How Is Yield Calculated? Yield is attributed to accounts based on regular on-chain snapshots of open positions. ### What Rate of Yield Is Generated? There is no fixed rate. Yield is based on the utilization rate of the USDT pool on Venus at any given time, which you can see [here](https://app.venus.io/#/markets/0xfD36E2c2a6789Db23113685031d7F16329158384?chainId=56\&tab=assets). Note that Predict takes a management fee of **10%** on yield generated. ### Disclaimer While we actively monitor utilization and available liquidity rates in accordance with internal risk management thresholds, it is still possible for a sudden liquidity crunch to occur on the USDT pool on Venus. This would occur when the utilization rate crosses a set threshold, meaning at that time, there is little to no floating liquidity which could be used to unwind positions if required. However, by design, if that were to happen, the cost to borrowers would be so high that they would be incentivized to pay back their positions. Additionally, the yield for supplying funds would also increase significantly, incentivizing more users to deposit into the pool. Both of these would result in a lowering of the utilization rate, eventually resolving the liquidity crunch altogether. From a user’s point of view, In the rare event of a liquidity crunch, it may be the case that users with open positions on yield-bearing markets may be unable to claim winnings for a short period of time. Based on historical data, liquidity crunches typically resolve within one day based on normal market dynamics. In the event where there is still sufficient liquidity available (even though on a very tight margin), Predict has the right to withdraw all funds from Venus and turn yield bearing markets into non yield bearing markets until the liquidity crunch is resolved. Should a liquidity crunch with insufficient liquidity available occur, the following actions would be executed:
1. Announcement in Discord to Predict users 2. Immediate sync with Venus team 3. Work with Venus team to lower utilization rate 4. Pause deployment of new yield-bearing markets 5. Evaluate potential revised risk thresholds
To further decrease the likelihood that Predict.fun is impacted by liquidity crunches, we are also in discussions with various protocols to diversify the platform’s yield sources.