> 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/risky-earn.md).

# Risky Earn

## Risky Earn Overview

Define an asset price target. Earn risky yield on your capital at risk. 

## Placing Risky Earn Orders

<figure><img src="/files/2W5gtFcKt4zoJgocwbua" alt=""><figcaption></figcaption></figure>

* In the **Stories** tab, select Risky Earn | Riskless Earn
* Enter your order parameters
  * **Type:** Select "Risky Earn"
  * **Risk/Capital at Risk:** The amount at risk. User can choose WETH or USDC&#x20;
  * **Target Price:**  Select a target price under which your capital is at risk&#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

## Risky 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>Target Price </p><p>If reference price at expiry > target price </p><p>Receive target price in USDC  + USDC premium</p><p>If reference price at expiry &#x3C; target price </p><p>Receive USDC risk amount in WETH equivalents + USDC premium</p><p>Order entry: risk in USDC or risk in WETH</p><p><br>Target price</p><p>Desired APY = premium / risk 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>Risk Amount = Target Price</td></tr><tr><td>Collateral Management</td><td>Fully collateralized, pre-funded</td></tr><tr><td>Multiplier</td><td>1</td></tr><tr><td>Target Price</td><td>Fixed standardized published levels</td></tr><tr><td>Reference Price</td><td>ITHACA Reference Fixing</td></tr><tr><td>Expiry Time</td><td>1st focal auction on relevant expiry Friday</td></tr></tbody></table>

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