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    Education only. Not financial, tax or legal advice. We never ask for wallet keys or seed phrases.Canadian rules dated October 2026
    DeFiCalculator.caMITEY network · Canadian DeFi maths
    Methodology

    How the calculators work, and what they leave out

    One calculation engine powers every calculator and scenario on the site. It's deterministic, runs in your browser, and is checked by automated tests against textbook values.

    Mitey the yeti sitting with a notebook and a small plant, with a magnifying glass over code
    Mitey: If you can't see the formula, you can't check it. So every page shows it.

    Principles

    • Your inputs, not our forecasts. We don't show live yields, prices or rankings. Default values are illustrative and labelled as such.
    • Formulas on the page. Each calculator lists its formulas and defines the symbols.
    • One engine. Calculators, scenarios and worked examples call the same functions, so a number in a guide matches the calculator.
    • Canadian facts are dated. Every CRA, CSA, CIRO, Finance Canada and CDIC fact links to the official page, with the date it showed and the date we checked it.
    • Privacy. Calculations run in your browser. Nothing connects to a wallet. We never ask for seed phrases or private keys.

    Conventions

    • Rates are annual percentages on a 365-day year unless a field says otherwise.
    • “APR” is a nominal rate; “APY” includes compounding at the frequency shown.
    • Constant-product pools use x·y = k (weighted pools use the Balancer-style weighted product). Stable pools use the two-coin StableSwap invariant, solved numerically.
    • Loan health factor = collateral value × liquidation threshold ÷ debt. Interest is simple over the period you enter.
    • Tax tools use the average-cost method for identical property and one marginal rate. They don't model provincial differences, CPP, AMT or loss carry-overs.

    Reference checks the engine passes

    CheckResult
    APR to APY10% APR monthly = 10.4713%; daily = 10.5156%
    Constant-product ILPrice ratio 2 → −5.7191%; ratio 4 → −20.00%
    StableSwap with A = 0Matches constant product: −5.7191% vs −5.7191%
    Health factor10 units × $3,000 × 80% ÷ $15,000 = 1.60; liquidation at $1,875.00
    Leverage loop$1,000, 50% LTV, 2 loops → $1,750.00 exposure
    Black–ScholesS = K = 100, 1 year, 20% vol, 5% rate → call $10.4506
    DCAAverage cost equals the harmonic mean of purchase prices when amounts are equal and fee-free
    Superficial lossDenied share = min(sold, acquired in window, held at day 30) ÷ sold

    Known limits

    Models simplify. They don't capture smart-contract failure, oracle errors, governance changes, variable rates moving against you, liquidity drying up, or the timing of real transactions. The risk hub covers those; treat any calculator output as one input to a decision, not the decision.

    Corrections are welcome through the contact page. Last full review: October 30, 2026.