# What is APY

Annual Percentage Yield

Annual Percentage Yield is abbreviated as APY. This calculates the real rate of return on your principal by factoring in the effect of compounding interest. In the case of NOF, your $NOF tokens represent your principal, and compound interest is added on each Rebase event (every 15 minutes), also known as an 'Epoch.' Your new principal amount is equal to the sum of your then-current NOF token amount and you're new rebase token amount. This total is used to calculate you're next rebase rewards.

Last modified 1yr ago