You deposit an amount of IF token and choose a lockup period. Each lockup period will correspond to a different APR, and the longer you lock, the higher your APR will be.
After deposited your IF token to the Vault, you will daily receive BUSD reward from 2% trading volume (2% from Buy Tax and 2% from Sell Tax)
BUSD rewards are calculated based on your percentage of the overall IF staked in the Vault, this percentage gives you proportional access to the funds accumulated from the BUSD Vault collected from the 2% IF trading volume, accumulated from the buy & sell tax.
You can early unlock but it will be charged a 10% penalty of the total IF deposited amount and the Insurance Contract (if you signed) lapses.
How does InsuranceFi Vault play an important part in keeping IF value sustainable in the long run?
The more IF tokens are locked into the Vault, the fewer IF tokens will be outside the market. Token price is based on supply /demand, so staking in the Vault will reduce IF token supply in circulation and increase IF token demand as new investors want to join the project, this will help IF token price to grow in the long run.
The BUSD APR depends on daily IF trading volume and your share percentage of the total locked IF in the Vault.
In case the daily IF trading volume is high but the number of locked IF in the Vault is also high, your BUSD APR might be lower than on other days.
In case the daily IF trading volume is high and the number of locked IF in the Vault is low, that means you can have a larger percentage of the total IF locked, so you will receive a higher BUSD APR.
The BUSD APR number showing up when you deposited to the Vault is not fixed so the APR might change every day.