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

# Leaderboard & ranking

Chamber's leaderboard helps depositors compare vaults at a glance. Two metrics do most of the work: **Vault Score** (an ordered performance summary) and **Risk Factor** (a 1–5 downside-volatility rating). Both are backward-looking. Neither predicts future returns.

## Vault Score

A single number combining risk-adjusted performance and vault size.

```
Vault Score = Sortino ratio × √(7-day average vault value)
```

Two components:

* **Sortino ratio.** A common risk-adjusted return metric: excess return divided by downside deviation. Rewards steady upward performance and penalises downside volatility. Unlike the Sharpe ratio, it ignores upside volatility (because upside volatility is what depositors want).
* **√(7-day average vault value).** A size term. Rewards vaults that have actually deployed meaningful capital.

### Why the size term

Without the size term, a vault with $100 AUM that got lucky could top the leaderboard. That wouldn't be useful information. The `√(value)` term means:

* Size matters, but with diminishing returns: a $10M vault doesn't score 100× a $100k vault; it scores \~10× (all else equal).
* A new vault with no meaningful capital scores low even if early performance is good. It has to get capital to get credit.

### Eligibility

Not every vault is eligible for a Vault Score. Vaults typically need a minimum track record (in days) and some minimum level of performance before they're ranked. Exact thresholds are set in the app, not onchain, and can change. Check the in-app leaderboard filters for current eligibility rules.

### What Vault Score doesn't capture

* **Strategy difficulty.** A stablecoin yield vault and a leveraged ETH vault are scored by the same formula despite being very different products. Both should be evaluated on their own terms.
* **Forward returns.** Past Sortino doesn't predict future Sortino.
* **Manager changes.** If a vault changes strategy or manager, the score takes weeks to catch up.
* **Correlation.** Two vaults with high Vault Scores may hold correlated positions; holding both doesn't diversify you as much as you'd think.

## Risk Factor

A 1–5 rating based on **downside deviation**: how much the vault's share price has moved down historically.

* **1**: historically low downside volatility. Stablecoin strategies, tight spreads.
* **2**: low. Steady yield, diversified exposure.
* **3**: moderate. Typical managed crypto strategy.
* **4**: high. Concentrated positions, directional bets.
* **5**: very high. Leveraged tokens, thinly-traded assets, aggressive strategies.

Risk Factor is useful as a **first-pass filter**: if you want something that won't move much, look for 1s and 2s. If you want aggressive alpha, you'll find it at 4s and 5s.

### What Risk Factor doesn't capture

* **Tail risk.** A strategy that's stable 99% of the time and catastrophic 1% of the time can show a low Risk Factor despite carrying high real risk.
* **Strategy changes.** If a manager pivots to a riskier approach, Risk Factor lags.
* **Smart-contract risk.** Contract-level risks (bugs, exploits) don't move with vault share prices and aren't in Risk Factor.

See [Deposit → Risks](/deposit/risks.md) for the full risk picture.

## The leaderboard UI

The Chamber app leaderboard lets you:

* Filter by **chain**.
* Filter by **category** (managed, automated, etc.: a label managers set in vault settings).
* Sort by **Vault Score**, AUM, age, or fees.
* Filter by **Risk Factor**.

## How to read the leaderboard

A few sensible rules of thumb:

1. **Filter by your risk tolerance first.** Don't sort by top Vault Score across the whole board. High scores at Risk Factor 5 are not the same product as high scores at Risk Factor 1.
2. **Filter by track-record length.** Vaults less than a few months old have noisy Vault Scores. Require at least 2–3 months of history for a signal you can rely on.
3. **Don't treat the leaderboard as a recommendation.** It's a sortable directory, not a buy list. Read the vault page before depositing.

## Related

* [Deposit → Find a vault](/deposit/find-a-vault.md): depositor's workflow for browsing.
* [NAV and accounting](/concepts/nav-accounting.md): what share price movements (which Risk Factor reads from) actually represent.
* [Risks](/deposit/risks.md): the fuller risk framing.