Funding Mirage
Funding mirage is the gap between what the market advertises and what a desk can plausibly capture.
Inspect mirage-heavy opportunities in the screener
Definition
A funding mirage appears when the raw funding APR looks attractive, but most of that yield disappears once decay, crowding, capacity, and execution friction are applied.
Why It Matters
- High raw APR alone is not actionable.
- Mirage-heavy setups often decay before a realistic position can harvest the quoted rate.
- Institutional users need to know whether the edge survives size, time, and competition.
How FYOS Treats It
FYOS expresses this gap through:
- Survivable APR
- Half-life
- crowding and capacity stress
If the headline yield does not survive those checks, the opportunity is treated as fragile or illusory rather than investable.
Practical Reading
When reviewing one opportunity:
- start with survivable APR
- compare it to the headline rate
- inspect half-life and crowding
- decide whether the edge is durable enough for your holding window