# yzPP Reward Mechanism (Risk Premiums) * **yzPP’s APY** is composed of two components: i) a base yield equivalent to that of **syzUSD**, ii) and an **additional yield budget** allocated by the protocol specifically for yzPP. * The budget for yzPP's additional yield is set daily by the protocol (see below on Risk Premiums). * yzPP yield is estimated to be >200% that of syzUSD yield based on a 110% collateral ratio. ### Risks Premiums As part of our commitment to sustainable protocol growth and structural integrity, Yuzu Money is formalizing the risk-reward framework for yzPP, this is to ensure that yzPP depositors—who act as the protocol's first-loss backstop are consistently and fairly compensated for the capital risk they assume in protecting the broader yzUSD ecosystem. The protocol has decided to fix risk premiums that redirects yield surplus to yzPP at 15%. To put simply, this **15% risk premium** is a additional factor applied on the base yield equivalent that is currently being paid out to **syzUSD token holders**. The formula for tabulating estimated yzPP yield is as shown below: $$ yzPP \ yield\ (APY) = \frac{syzUSD\ yield \* (1 + Risk\ Premiums)} { yzPP\_{TVL}} $$ --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://yuzu-money.gitbook.io/yuzu-money/yuzu-alpha/yuzu-protection-pool-yzpp/yzpp-reward-mechanism-risk-premiums.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.