Financials

Overview

Lending Markets

Trading Activity

Aries collects a one time fee at the initiation of a loan or flash loan. This fee currently ranges from 0.05% to 1%.

One-time fee charged to initiate a loan or a flash loan.

Aries: Loan Initiation Fee

Based on the last 30 days.

Aries: Daily Fees from Borrowing Activity

Aries takes a portion of interest generated from lending operations to fund a reserve, at rates ranging from 10% to 60%. This reserve is used to cover bad debt from liquidations. 

Interest earnings from lending minus interest paid to depositors. 

Aries: Net Interest Revenue

Aries: Daily Reserve Income from Interest Cut

F indicates a linear forcast for the rest of the period. 

- **Net Interest Revenue** is the total interest income less interest expenses. Interest income is generated through lending operations, and interest expenses are a portion of incoming interest paid out to depositors.   
- **Non-Interest Income** is made up of various fees charged to users interacting with the protocol: 

    - **Borrow Fees:** Fees charged to the user upon loan initiation, ranging between 0.05% and 1% of the value borrowed depending on the asset. 
    - **Flash Loan Fees:** Fees charged to the user for a flash loan, ranging between 0% and 1% of the value borrowed depending on the asset. 
    - **Liquidation Fees:** Fees charged to liquidators when liquidating a position, equal to a percentage of the value of collateral seized in the liquidation. 

- **Non-Interest Expense** is made up of protocol incentives paid by Aries to incentivize activity on the platform. Funded through an Aptos Ecosystem incentive grant, denominated in APT (shown in USD value). 

    - **Borrow Farm Incentives:** Incentives paid out by Aries on eligible borrow positions to strategically incentivize activity.

    - **Deposit Farm Incentives:** Incentives paid out by Aries on eligible deposits to strategically incentivize activity.

- **Total Operating Income:** Income earned through regular business operations. Calculated as Net Interest Income + Non-Interest Income - Non-Interest Expenses. 

- **Non-Operating Items:** Income from non-regular business operations. In the case of Aries this is made up of incentive grants from Aptos, paid in APT. These grants are used to fund *Borrow Farm Incentives* and *Deposit Farm Incentives*.

    - **Borrow Farm Incentive Funding:** Aptos APT grants earmarked for strategically incentivizing borrowing activity. 

    - **Deposit Farm Incentive Funding:** Aptos APT grants earmarked for strategically incentivizing deposits. 

- **Total Revenue:** Net Interest Income + Non-Interest Income + Non-Operating Items 

- **Total Expenses:** Total Non-Interest Expenses (Interest expenses are netted out in Total Revenue)

- **Total Other Income:** All non-operating, non-reoccuring income, Not included in total Revenue or total expenses. 

- **Total Income:** Total Operating and Non-Operating Revenue minus Total Operating and Non-Operating Expenses. 




Aries: Income Statement 

**Total Assets**

- **Available Liquidity:** Total available liquidity available to be loaned out. Calculated as Total Supply - Total Outstanding Loans. 

- **Loans:** Total value of oustanding loans. 

- **Incentive Program Rewards:** Balance of APT designated for Aries Borrow and Deposit Farming incentive program. 

- **Allowance for Loan Loss:** Reserve of assets for funding losses in the event of liquidation resulting in bad debt. Funded by taking a percentage of interest generated through lending. 

**Total Liabilities**

- **Deposits:** Total value of deposits received by users. 

- **Farming Incentives:** Total value of incentives earmarked for Borrow/Deposit Farming incentive program. 

**Total Equity** 

Aries: Balance Sheet

F indicates a linear forecast for the remainder of the current period. 

Broken down into Operating Cash Flows and Financing Cash Flows: 

**Operating Cash Flows:**

- **Operating Cash Inflows:** The total amount of Interest Received, and Fees Collected throughout the period. 

- **Operating Cash Outflows:** The total amount of Interest Paid to depositors, and Incentives Paid to users for eligible activities.

**Financing Cash Flows:** Total value of Grants received for funding incentive program. 

Aries: Cash Flow

Aries: Assets & Liabilities

A range of 40% to 90% of interest earnings from lending operations is passed through to the depositor. The remaining amount is allocated to the reserve, which is used to cover loss in the event of a liquidation. 

Aries: Interest Generated

Includes all reoccuring sources of revenue generated through business operations, including net interest income, and protocol fees. 

Does not include non-reoccuring, or non-operating income. 

Net interest income + Non-Interest Income

Aries: Total Revenue

NIM measures how profitably the protocol earns its lending spread over its capital base. A higher NIM means you’re capturing more of the interest charged to borrowers, after covering depositor yields, per dollar of assets deployed. It’s the protocol’s core “spread” return, directly comparable to banks’ lending margins.

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Aries: Financials

Aries: Total Revenue

Aries: Net Interest Margin (NIM)

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