# Points

When Sail shows a Points APY for a day, that is the rate used to compute how many points you receive for that day. 

#### Where points come from

Sail targets a headline APY by combining:

`APY_shown = APY_USD + APY_points`

* **USD APY** comes from real DeFi strategies.
* **Points APY** is the incentives top-up used when USD APY is below the current target.

#### Points valuation (USD per point)

Points are computed from a USD value using Sail’s latest private valuation.

* **Current FDV:** `$10,000,000`
* **Total supply (fixed):** `1,000,000,000`

We define:

* `P` = points valuation (USD per point)
* `P = FDV / total_supply`
* `P = 10000000 / 1000000000 = $0.01`

**Disclaimer:** `FDV` uses Sail’s latest private valuation and may change. Points are not USD and are not transferable today. The points you receive are not estimates, they are the actual points credited to your account based on the program rules.

#### How points are calculated

Points are distributed based on the **daily USD value** of your Points APY.

1. **Compute your Points APY for the day**

`APY_points = max(0, APY_target - APY_USD)`

2. **Convert Points APY into a daily USD value**

Let `B` be your eligible balance for the day.

`daily_points_value_usd = B * (APY_points / 365)`

3. **Convert daily USD value into points**

`points_awarded = daily_points_value_usd / P`

Notes:

* If USD APY is higher, Points APY is lower (and you receive fewer points).
* If USD APY is lower, Points APY is higher (and you receive more points), subject to the incentives budget.

#### Example

If the target is 20% and today’s USD APY is 8%:

`APY_points = 0.20 - 0.08 = 0.12`

For a `$10,000` balance:

`daily_points_value_usd = 10000 * (0.12 / 365) ≈ 3.29`

So you receive about `$3.29` worth of points for that day:

`points_awarded = 3.29 / P`

#### Timing

* Points are computed on a daily basis.
* Your points balance updates after the daily calculation completes.

#### Withdrawals

* Withdrawing reduces the balance used for future daily points calculations.
* To discourage short-term farming, withdrawing may remove recently accrued points (for example, the last 24 hours) on the withdrawn portion.

#### Points and $SAIL

Points are designed to convert into $SAIL at a later date.

* **1 point = 1 $SAIL** at the time of conversion.
* Conversion timing and claim mechanics will be announced ahead of launch.

#### Legacy points conversion (existing users)

We’re allocating 1% of the total $SAIL supply to users from the previous points program.

* Total supply: `1,000,000,000` $SAIL
* Legacy allocation: `1%` of supply = `10,000,000` $SAIL
* Distribution: proportional to the legacy points ledger at the time of conversion
* Pre-Referral Program users also get the 10% multiplier as they would have signed in with a referral code. 

#### Leaderboard

You can track your rank on the points leaderboard at <https://sail.money/leaderboard><br>


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