# Stablecoin yield: rates, risks and fees

In Fiber, earn lives inside the balance and accrues visibly. We keep the experience simple, but we do not pretend the rate is fixed or the mechanism is risk-free.

> THE SHORT ANSWER: Fiber shows earn accruing in real time, with the current variable rate and applicable details in the app. Before using it, understand the yield source, rate definition, fees, withdrawal conditions, protocol exposure, liquidity and stablecoin risk.

- Fiber shows a current variable rate, not a guarantee of future returns.
- We keep earn in the balance, but convenience does not collapse the risk layers.
- APY and APR describe returns differently and need like-for-like comparison.
- Access, liquidity and net fees matter as much as the headline rate.

## What drives the earn rate in Fiber

Yield may come from lending demand, protocol incentives, market-making activity, tokenized real-world assets or other strategies. Each source has a different risk profile and can change as market conditions change.

We believe the rate should never be the only large thing on the screen. Check whether yield comes from a third-party protocol, a temporary promotion or another model, and read the current Fiber app details for the mechanism and terms that apply.

## How Fiber asks you to read the rate

APR is a simple annualized rate. APY generally assumes compounding. A 30-day average describes a historical period, not the rate that will continue tomorrow.

Fiber displays earn as it accrues so the balance does not feel like a mystery total. The live movement is a view of accrual, not a promise about future performance. Current rates are variable and appear in the app beside the applicable availability, risk and term details.

## The risks our live balance cannot remove

Fiber makes earn legible; it does not make the underlying risks disappear. Stablecoins can deviate from their intended value, smart contracts can contain vulnerabilities, lending markets can face bad debt or liquidity pressure, an integrated provider can fail and a wallet can be compromised.

- Stablecoin issuer, reserves and redemption path
- Protocol and smart-contract audits
- Counterparty and borrower exposure
- Withdrawal timing and available liquidity
- Custody and wallet-recovery design
- Deposit, withdrawal, network and performance fees

## Why Fiber keeps earn connected to utility

A higher displayed rate can be offset by fees, lockups, token incentives that lose value or the cost of moving funds between products. Fiber keeps earning, transferring and spending in one account because the useful comparison is what remains available after the whole journey.

We do not describe stablecoin yield as guaranteed or risk-free. Use only amounts consistent with your risk tolerance and seek professional advice where appropriate.

## Questions worth asking before the money moves.

### Is stablecoin yield guaranteed?

No. Rates for earn in Fiber are variable, and the underlying strategies can lose money or become unavailable.

### Why does the rate change?

Borrowing demand, market conditions, incentives, underlying asset yields, liquidity and strategy allocation can all affect the rate Fiber displays.

### Does non-custodial earn remove all risk?

No. Fiber’s non-custodial architecture changes who controls the assets; smart-contract, stablecoin, liquidity, market and wallet risks can remain.

## Sources

- [SEC: Statement on stablecoins](https://www.sec.gov/newsroom/speeches-statements/statement-stablecoins-040425)
- [Investor.gov: Exercise caution with crypto asset securities](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-alerts/crypto-asset-securities)

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Fiber is a financial technology company, not a bank. Banking services are provided by SSB, Member FDIC. Funds deposited at SSB are eligible for FDIC insurance up to $250,000 per depositor, per insured bank, subject to applicable limitations and FDIC rules.