> For the complete documentation index, see [llms.txt](https://docs.ithacaprotocol.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ithacaprotocol.io/docs/ithaca-app/trading/stories/riskless-earn.md).

# Riskless Earn

## Riskless Earn Overview

Earn yield on your collateralized loan (no margin liquidation risk)

## Placing Riskless Earn Orders

<figure><img src="/files/4sW0DJQA0M4xyn9cQAo3" alt=""><figcaption></figcaption></figure>

* In the **Stories** tab, select Risky Earn | Riskless Earn
* Enter your order parameters
  * **Type:** Select "Riskless Earn"
  * **Lend:** The amount at risk in USDC&#x20;
  * **Target Earn:**  The limit order equivalent that will define what will the user earn at expiry depending on Eth price at expiry&#x20;
* Verity Order Summary
  * Order limit: Order price
  * Collateral requirement: The amount required to be locked so as to ensure that the order enters the auction.&#x20;
  * Platform fee: Fee to be paid in case of execution.&#x20;
  * Total premium: The total to be paid net of fees.&#x20;
* "Submit to Auction" and approve your transaction in your wallet

## Riskless Earn Contract

<table><thead><tr><th width="202">Item</th><th>Description</th></tr></thead><tbody><tr><td>Products</td><td>Earn</td></tr><tr><td>Payout Formula</td><td><p>Capital x ( 1 + Target yield )</p><p>Order entry: desired APY</p><p><br>Desired APY = premium / capital in USDC equivalent</p></td></tr><tr><td>Underlying</td><td>WETH/USDC</td></tr><tr><td>Settlement Style</td><td>Cash or ETH</td></tr><tr><td>Exercise Style</td><td>European, auto-exercised</td></tr><tr><td>Premium Currency</td><td>USDC</td></tr><tr><td>Settlement Currency</td><td>USDC or WETH</td></tr><tr><td>Strike Currency</td><td>USDC</td></tr><tr><td>Collateral Currency</td><td>USDC or WETH</td></tr><tr><td>Collateral Amount</td><td></td></tr><tr><td>Collateral Management</td><td>Fully collateralized, pre-funded</td></tr><tr><td>Multiplier</td><td>1</td></tr><tr><td>Strike Price</td><td>Fixed standardized published levels</td></tr><tr><td>Expiry Time</td><td>1st focal auction on relevant expiry Friday</td></tr><tr><td>Expiry Dates</td><td>( Ithaca Expiry )</td></tr></tbody></table>


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