From ecacdf0fa1d270d4e566863bc704f4dbb709d0c4 Mon Sep 17 00:00:00 2001
From: latent-9 <296084221+latent-9@users.noreply.github.com>
Date: Mon, 10 Aug 2026 23:43:15 +1200
Subject: [PATCH 1/2] Fix APR math in nextRevenuePoolSettleApr

---
 sdk/src/math/insurance.ts | 10 ++++++----
 1 file changed, 6 insertions(+), 4 deletions(-)

diff --git a/sdk/src/math/insurance.ts b/sdk/src/math/insurance.ts
index 6524b5d86c..9d78b23944 100644
--- a/sdk/src/math/insurance.ts
+++ b/sdk/src/math/insurance.ts
@@ -17,7 +17,7 @@ export function nextRevenuePoolSettleApr(
 		SpotBalanceType.DEPOSIT
 	);
 
-	const payoutRatio = 0.1;
+	const payoutRatioDenominator = 10;
 	const ratioForStakers =
 		spotMarket.insuranceFund.totalFactor > 0 &&
 		spotMarket.insuranceFund.userFactor > 0 &&
@@ -34,11 +34,13 @@ export function nextRevenuePoolSettleApr(
 
 	const projectedAnnualRev = revenuePoolBN
 		.muln(settlesPerYear)
-		.muln(payoutRatio);
+		.divn(payoutRatioDenominator);
 
-	const uncappedApr = vaultBalance.add(amount).eq(ZERO)
+	const delta = amount ?? ZERO;
+
+	const uncappedApr = vaultBalance.add(delta).eq(ZERO)
 		? 0
-		: projectedAnnualRev.muln(1000).div(vaultBalance.add(amount)).toNumber() *
+		: projectedAnnualRev.muln(1000).div(vaultBalance.add(delta)).toNumber() *
 		  100 *
 		  1000;
 	const cappedApr = Math.min(uncappedApr, MAX_APR.toNumber());

From 1cb9f781fc0db5411cbec965ae2af3c8896e80a0 Mon Sep 17 00:00:00 2001
From: latent-9 <296084221+latent-9@users.noreply.github.com>
Date: Tue, 11 Aug 2026 01:18:47 +1200
Subject: [PATCH 2/2] sdk: use integer mul/div for settles-per-year in
 nextRevenuePoolSettleApr

The fractional settlesPerYear was passed to BN.muln, which only accepts a
small integer and truncates otherwise, so the projected annual revenue was
wrong for any revenue settle period that does not evenly divide a year.
Multiply then divide with integers to keep the value exact.
---
 sdk/src/math/insurance.ts | 5 ++---
 1 file changed, 2 insertions(+), 3 deletions(-)

diff --git a/sdk/src/math/insurance.ts b/sdk/src/math/insurance.ts
index 9d78b23944..3e0baa0774 100644
--- a/sdk/src/math/insurance.ts
+++ b/sdk/src/math/insurance.ts
@@ -30,10 +30,9 @@ export function nextRevenuePoolSettleApr(
 	const revSettlePeriod =
 		spotMarket.insuranceFund.revenueSettlePeriod.toNumber() * 1000;
 
-	const settlesPerYear = 31536000000 / revSettlePeriod;
-
 	const projectedAnnualRev = revenuePoolBN
-		.muln(settlesPerYear)
+		.mul(new BN(31536000000))
+		.div(new BN(revSettlePeriod))
 		.divn(payoutRatioDenominator);
 
 	const delta = amount ?? ZERO;