# Calculation of Deposit Amount

To ensure all Middle-priority CT-tokens remain interchangeable—regardless of when users fund—every future cash flow (principal and interest) is discounted back to the stage closing date. Early contributors also earn an **Early Adopter Bonus** (see [**Early Adopter Bonus**](/eightlends/usd8lends-token-supply-models/early-adopter-bonus-eab.md)).

**Core Concepts**

* **APR (Annual Percentage Rate)**: Simple annual interest rate used to calculate each interest payment (no compounding).
* **APY (Annual Percentage Yield)**: Effective annual return including compounding; used here as the discount rate **r**.
* **No Annuities:** Loans follow either a bullet repayment (principal + interest at maturity) or interest-only schedules; annuity payments are not supported.

<details>

<summary>Deposit Formula for Middle-Priority CT-Tokens (Advanced Users)</summary>

<figure><picture><source srcset="/files/iLyATyqz37GBHOgCrRZJ" media="(prefers-color-scheme: dark)"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcwpbkoGCwMJPqPlJKsNlkvkdokLe5lt-FgIA5QFTD5Vij6TxcxAxbKOvSsoDq3HnD4V0BScLfgYwPEXXsMcuWO-DIqH8IZQuq9FLTZxANazfXLJ51gnS4yBlqicK4SD-qfV8_sdw?key=uyWe8rY2jy2nS4gSFfqFJ_Vw" alt=""></picture><figcaption></figcaption></figure>

where:

* &#x4E;**:** Number of expected payments
  * N=1 for a discount loan (single bullet payment of principal);&#x20;
  * N>1 when interest is paid periodically (monthly or quarterly).
* **CF\_k​**: Cash flow at the kth payment
  * **Bullet repayment (discount loan):** CF\_1= Principal;&#x20;
  * **Monthly interest only:** CF\_k = APR / 12 × Principal;&#x20;
  * **Quarterly interest only:** CF\_k = APR / 4 × Principal;
  * *Note:* The final payment returns the principal no matter the repayment schedule.
* **r:** Annual discount rate = **APY**
  * **r = APY = APR** for monthly and quarterly interest, which means the cashflows are discounted at the same rate as the APR of LP.&#x20;
* **t\_k:** Days from stage close to the kth payment date.

By discounting each cash flow to a common date, every CT-token of same priority and nominal in the pool represents the same economic value, preserving fungibility across multiple stages.

<br>

</details>


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