> For the complete documentation index, see [llms.txt](https://docs.thefiva.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.thefiva.com/fiva-strategies/basic-strategies/fixed-yield-with-pt.md). # Fixed Yield with PT When you buy PT tokens, you are locking in a fixed yield. Let’s break it down with an example: Suppose you buy 1 PT tsTON for 0.9 TON with a 1-year maturity. This means, that after 1 year, you will be able to redeem 1 PT for 1 TON. In this case, your fixed APY (Annual Percentage Yield) is 10%. Now, you could sell your PT tokens before the 1-year maturity, but the price you get will depend on the current market rate. If the market rate drops, your APY could be lower than the original 10%. As more people buy PT tokens, the price of PT increases because there are fewer PT tokens available. For example, after you buy, the next buyer may have to pay 0.91 TON for 1 PT – reducing their fixed yield to about 9.9%. So, as PT prices go up, the fixed yield goes down for new buyers. At the same time, the price of YT (Yield Token) rises due to the relationship between PT, YT, and the underlying asset: PT + YT = the value of the underlying token. As PT prices rise, YT becomes more expensive, meaning future buyers will have to pay more to earn yield. In simple terms: * PT is cheaper when the yield is high, meaning you can buy PT at a discount (e.g., for 0.8 TON). When the PT matures, you’ll redeem 1 PT for 1 TON, locking in a nice fixed yield. * As maturity approaches, PT tokens increase in value, and at the end, they are fully redeemable for the underlying asset (1 PT = 1 TON). This allows users to lock in fixed yields or trade their PT tokens in the market. **Key Takeaway:** * PT tokens are ideal for locking in fixed returns and will increase in value as they approach maturity. By creating a market where users like you are allowed the option to either buy the principal token and hold till maturity or buy the yield token and sell at any time, FIVA provides more investment opportunities. FIVA’s unique market creates a dynamic where users can manage their investment strategies based on their risk tolerance and yield expectations, giving them more control and flexibility in DeFi. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.thefiva.com/fiva-strategies/basic-strategies/fixed-yield-with-pt.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.