Risk-Free Rates
The risk-free rate is the baseline return the optimizer subtracts to form excess returns. It drives every reward-to-risk metric (Sharpe, Sortino, Treynor, Jensen's alpha) and the Maximum Sharpe objective. You choose it per request through a region and, where a curve exists, a tenor.
The contract
Each request carries a risk_free object with a region. Regions that expose a yield curve also take a tenor; regions that do not ignore it. The chosen rate is annualized, converted to the return frequency of the series, and subtracted before any ratio is computed.
India (region IN)
The default region. Indian portfolios use a domestic sovereign risk-free rate; no tenor is required, and any tenor sent is ignored.
"risk_free": { "region": "IN" }United States (region US)
US portfolios pick a point on the US rate structure: either the overnight policy rate or a government constant-maturity tenor. A tenor is required for the US region.
| Tenor value | Maturity | Type |
|---|---|---|
FedFunds | Overnight policy rate | Policy rate |
1M | 1 month | Constant maturity |
3M | 3 month | Constant maturity |
6M | 6 month | Constant maturity |
1Y | 1 year | Constant maturity |
2Y | 2 year | Constant maturity |
3Y | 3 year | Constant maturity |
5Y | 5 year | Constant maturity |
7Y | 7 year | Constant maturity |
10Y | 10 year | Constant maturity |
20Y | 20 year | Constant maturity |
30Y | 30 year | Constant maturity |
"risk_free": { "region": "US", "tenor": "10Y" }A short tenor (overnight, 1M, 3M) is the conventional choice for Sharpe-style metrics; longer tenors suit a buy-and-hold horizon. Pick the maturity that matches your holding period.
Region must match the market
40002 INVALID_ASSET_GROUP, the same coherence rule that keeps benchmark and currency aligned. See US Stocks for the market rules.For how the excess return then feeds each ratio, see the Sharpe Ratio and Performance Measures pages.