On Cryptex v1, overcollateralized investors deposit funds into Cryptex and mint TCAP tokens. On Cryptex v2, traders trade leveraged perpetual contracts against liquidity pools supplied by liquidity providers.

Cryptex v1 is non-custodial asset management protocol built on Ethereum, while Cryptex v2 is an exchange for perpetual contracts on Arbitrum. Cryptex was founded by Joe Sticco, Preston Van Loon & Thomas Matzner and launched in 2021.

CTX token holders own and govern the protocol. They currently take all of the total withdrawal fees paid by investors and trading fees paid by traders (revenue).

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# Cryptex Earnings Methodology

## 1. Overview

Earnings represents Cryptex's net profitability by calculating total revenue minus total expenses. This metric answers the fundamental business question: "What is Cryptex's daily net income from its asset management and perpetual trading operations?" The calculation combines fee revenue from two business lines (asset management vault fees and perpetual trading fees) and subtracts all token incentive expenses paid to protocol participants.

## 2. Data sources

The earnings calculation relies on several blockchain data sources and external feeds:

- **Ethereum native transaction flows**: Native ETH transfer traces tracking movements between Cryptex vault accounts and treasury addresses
- **Ethereum ERC-20 token transfers**: Token transfer events for reward distributions, particularly CTX token movements from staking contracts
- **Cryptex V1 contract events**: `RewardPaid` events from various reward distribution contracts including `CTXLiquidityReward`, `ETHLiquidityReward`, `DelegatorFactory`, `DAIRewardHandler`, and `WETHRewardHandler`
- **Cryptex V2 Arbitrum trading events**: Perpetual trading events from Product contracts including `MakeOpened`, `MakeClosed`, `TakeOpened`, and `TakeClosed` for both TCAP and PERPE products
- **Oracle price feeds**: `NewTransmission` events from Arbitrum `AccessControlledOffchainAggregator` contracts providing TCAP and PERPE price updates
- **Uniswap V3 staking events**: `RewardClaimed` events from the UniswapV3Staker contract on Ethereum
- **End-of-day token price feeds**: Daily token prices for USD conversion across all tokens
- **Token metadata**: Decimal precision information for proper amount calculations

## 3. Step-by-step calculation

### Component A: Revenue calculation
- **Purpose**: Calculate total revenue from asset management fees and perpetual trading fees
- **Logic**: Revenue combines two streams. First, asset management fees from native ETH transfers between eight predefined Cryptex vault addresses (`account_address` values) and the treasury address `0xa54074b2cc0e446c7c963dc41dd58879af648838f98d`. These transfers are identified by filtering Ethereum native flows where amounts flow from vault addresses (negative amounts) and matching transfers to the treasury address (positive amounts) using the same transaction identifier (`unique_id`). Second, perpetual trading fees calculated as a percentage of notional trading volume. Trading events from Cryptex V2 Arbitrum contracts capture trade `amount` values, which are multiplied by corresponding oracle prices to get notional volume. Fee rates are 0.15% for trades before October 8, 2023, and 0.2125% after that date.
- **Key fields**: Native flow `amount` values, perpetual trade `amount` from trading events, oracle `price_amount` from price feeds, calculated `notional_trading_volume`, and resulting `fees`

### Component B: Expenses calculation  
- **Purpose**: Calculate total expenses from token incentive distributions
- **Logic**: Expenses consist entirely of token incentives paid to protocol participants through two mechanisms. First, delegator rewards captured from `RewardPaid` events across multiple Cryptex V1 Ethereum contracts, where the `reward` field represents CTX token amounts distributed. Second, Uniswap V3 staking rewards identified by filtering CTX token transfers from the UniswapV3Staker contract address `0xe34139463ba50bd61336e0c446bd8c0867c6fe65` that occur in the same transaction as `RewardClaimed` events, ensuring only legitimate reward distributions are captured.
- **Key fields**: Reward `amount` values from contract events, token transfer `value` amounts from staking distributions, `token_address` for proper token identification

### Component C: Oracle price integration
- **Purpose**: Provide market prices for calculating notional trading volumes
- **Logic**: Oracle prices come from `NewTransmission` events on Arbitrum's `AccessControlledOffchainAggregator` contracts, with separate contracts for TCAP and PERPE tokens. The raw `answer` values are divided by 10^18 to normalize decimals. Daily average prices are calculated for each token, then forward-filled to ensure continuous price coverage for volume calculations.
- **Key fields**: Oracle `answer` values normalized to `price_amount`, `token_symbol` for price matching

### Final aggregation
- **Combining components**: Revenue and expenses are calculated independently as daily totals, then combined using the formula: Earnings = Revenue - Expenses. All monetary values are first converted to USD using end-of-day token price feeds with appropriate decimal corrections based on token metadata.
- **Currency conversion**: USD conversion uses daily token prices, with amounts adjusted for token-specific decimal precision (e.g., dividing by 10^18 for 18-decimal tokens, 10^6 for 6-decimal tokens)
- **Time aggregation**: All data is truncated to daily boundaries using `timestamp_trunc(block_timestamp, day)`, with calculations performed at daily granularity
- **Final calculation**: Daily earnings equals the sum of all daily revenue (vault fees plus trading fees) minus the sum of all daily expenses (delegator rewards plus staking rewards), expressed in USD

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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