To solve this, we ask Alice and Bob to bundle their capital together as a whole and deploy into farms, so they are now a farming fund which Alice and Bob have 50% of ownership to the fund respectively. Suppose the predicted APY is 20%, Alice and Bob should be splitting the yield half-half, getting 10% APY each. However, as Alice is looking for high yield and doesn’t really care about risks, while Bob is looking for low risk and predictable return, Alice and Bob can negotiate a deal: As the yield starts getting farmed, say 20%, Bob will receive a fixed amount of yield first, say 8%, and the rest of the yield, 12%, goes to Alice. This doesn’t seem fair right? Both contributed the same amount of capital however Bob is getting less yield than what he deserves. However, imagine now the yield farms perform poorly and the yield generated is only 15%. Bob will still get his fixed payment: 8%, while Alice’s only getting 7%.