I did not understand how it works, but
- why does APY decrease with increasing time?
- The return on one day is higher than 5 days, is it not assumed that the longer the time, the higher the prediction of the bitcoin price becomes, and therefore the risk increases, which means that the profit will increase?
- Where will the difference come from?
- Is there a specific POOL? Margin or what?
I have no knowledge of the derivatives market but it is supposed to be Earn Up to 56% APY and not more than 100%.
APY is decreasing because the settlement price is higher in such case. Therefore, you have more control over which currency you gonna get in the end.
High APY is a bit tricky thing. For 1 day contracts it is harder to guess the closure price. Therefore, you got a higher reward but since it is just 1 day contract the actual reward would be pretty small. This small reward would be recalculated like if you've been investing 24/7 for a year (you probably wouldn't be investing like that) and show a huge APY.