Understanding Rates of Return
Completion requirements
There are various ways that 'returns' may be promoted; it is important that you understand these and how they can be manipulated.
Introduction
The most common calculation used is ROCE, which means Return on Capital Employed.
This may either be gross (before the inclusion of fees) or net (after fees). We require that where an advertised rate is gross, this be made clear, together with information regarding fees.
Our preference is that return rates are always gross.
Normally, ROCE is used with yielding assets, where there is a profit that represents the return on an asset that does not have capital growth.
However, with crypto, it is likely that return rates include capital growth as part of the calculation of the profits. This is normal.