> For the complete documentation index, see [llms.txt](https://docs.dexponent.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dexponent.com/sharpe-consensus/performance-benchmarking.md).

# Performance benchmarking

Compare like with like: the same time period, denomination and treatment of fees.

A change in total assets is not necessarily investment return. New LP deposits can increase AUM without improving anyone's share value. Share-value changes are more useful, but still need the fee treatment and data timestamp.

## Example

A DTF starts with 10,000 USDC. LPs add 5,000 USDC, taking assets to 15,000 USDC with no investment gain. Calling that a 50% return would be incorrect.

For an Index DTF, compare against a relevant basket or asset benchmark over the same dates. For Spot or Perpetual strategies, also consider drawdowns, exposure and leverage.

An annualized figure extrapolates a shorter period; it is not a promised yearly return. Compare results after costs where possible.

Return to [performance and transparency](/sharpe-consensus.md).