Honestly, I didn't understand for a long time what this percentage next to my portfolio actually shows. Turns out, most people in DeFi have no idea how it's calculated. Net APY is not just a number from one pool or one token. It's definitely not the same thing as what you clicked in the interface. It's your entire account summarized into one number. Imagine your balance. On the left, you're earning. On the right, you're paying. And this number answers only one question: am I making more money from what I provided than I lose on what I borrowed? That's it. No marketing hype. Just profit minus losses. The system calculates it this way. It takes each asset you've deposited, multiplies its value by the placement percentage, and sums it up. Then it takes each asset you've borrowed, multiplies its value by the loan interest rate, and sums it up. It compares both totals to the total amount of your deposited funds. Recently, I checked my portfolio. I deposited a thousand USDT at 6%, five hundred TRX at 4%. That gives me 60 plus 20, totaling 80 per year. But I borrowed 400 USDT at 10%, which costs me 40 per year. The total amount of my deposited funds is 1500. So, my actual net yield is 40 divided by 1500, which is about 2.67%. And here’s the important part. The dashboard might show 6% and 4% everywhere, but your actual account efficiency is 2.67%. This number already includes everything you've done. That's why people start panicking when their positions grow in value, but the net APY drops. But nothing is broken. The numbers just changed. This is normal and simply shows that your portfolio structure has shifted. If you understand DeFi, this is the basic understanding that helps avoid stupid decisions.