# Understanding stake vs. pledge

**URL:** <https://forum.cardano.org/t/understanding-stake-vs-pledge/60178>\
**Category:** Operate a Stake Pool\
**Created:** [8 May 2021 15:37 UTC](https://forum.cardano.org/t/understanding-stake-vs-pledge/60178 "2021-05-08T15:37:30Z")\
**Posts on this page:** 7\
**Page:** 1

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**Author:** ![andrewarrow](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/andrewarrow/32/31304_2.png) [@andrewarrow](https://forum.cardano.org/u/andrewarrow)\
**Post date:** [8 May 2021 15:37 UTC](https://forum.cardano.org/t/understanding-stake-vs-pledge/60178/1 "2021-05-08T15:37:30Z")

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here’s a simple question:

If I’m setting my margin to 100% and I stake 1000 ADA on my own node I’m running, does the pledge amount even matter?

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**Author:** ![POOLG](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/poolg/32/30084_2.png) [@POOLG](https://forum.cardano.org/u/POOLG)\
**Post date:** [8 May 2021 15:39 UTC](https://forum.cardano.org/t/understanding-stake-vs-pledge/60178/2 "2021-05-08T15:39:30Z")

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Not at that scale. check out the rewards calculator in order to simulate the effects of the pledge on your rewards.

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**Author:** ![ADA4Good](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/ada4good/32/39440_2.png) [@ADA4Good](https://forum.cardano.org/u/ADA4Good)\
**Post date:** [8 May 2021 15:45 UTC](https://forum.cardano.org/t/understanding-stake-vs-pledge/60178/3 "2021-05-08T15:45:19Z")

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Hi @andrewarrow you can calculate it all with this calculator:

[https://dynamicstrategies.io/crewardcalculator/pool1ewrm7y47s9hv6hxku9n5gfnsuspymp0qqpwgvgm9rvm37cek2h6](https://dynamicstrategies.io/crewardcalculator/pool1ewrm7y47s9hv6hxku9n5gfnsuspymp0qqpwgvgm9rvm37cek2h6)

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**Author:** ![andrewarrow](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/andrewarrow/32/31304_2.png) [@andrewarrow](https://forum.cardano.org/u/andrewarrow)\
**Post date:** [8 May 2021 21:39 UTC](https://forum.cardano.org/t/understanding-stake-vs-pledge/60178/4 "2021-05-08T21:39:48Z")

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These are great! Can you explain the difference between:

“Pool Operator’s Return”  
“Delegator’s Return”  
and  
“Total Pool Return”

I’m able to make the “Pool Operator’s Return” goto very high amounts, but what am I missing with this approach?

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**Author:** ![ADA4Good](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/ada4good/32/39440_2.png) [@ADA4Good](https://forum.cardano.org/u/ADA4Good)\
**Post date:** [9 May 2021 00:09 UTC](https://forum.cardano.org/t/understanding-stake-vs-pledge/60178/5 "2021-05-09T00:09:38Z")

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> [@andrewarrow](#):
>
> “Pool Operator’s Return”  
> “Delegator’s Return”  
> and  
> “Total Pool Return”

The first is what the pool operators return will be. The secind is the return of the delegators delegating to that pool and the last is calculated by dividing the total rewards by thr total stake (pledge plus delegators stake)

If you set the margin to 100% all rewards go to pool operator and the return for the delegators will be zero

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**Author:** ![andrewarrow](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/andrewarrow/32/31304_2.png) [@andrewarrow](https://forum.cardano.org/u/andrewarrow)\
**Post date:** [9 May 2021 13:19 UTC](https://forum.cardano.org/t/understanding-stake-vs-pledge/60178/6 "2021-05-09T13:19:36Z")

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ah thank you. I understand now why the calculator was showing these HUGE % returns for “Pool Operator’s Return”.

When I set the “Total Pool Stake” to a large amount, but the “Pool Pledge” to a small amount, that’s saying the “Delegator’s Stake” is all coming from other people. Thus, your “Pool Operator’s Return” is quite large based on what you placed in the pool.

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**Author:** ![ADA4Good](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/ada4good/32/39440_2.png) [@ADA4Good](https://forum.cardano.org/u/ADA4Good)\
**Post date:** [9 May 2021 14:53 UTC](https://forum.cardano.org/t/understanding-stake-vs-pledge/60178/7 "2021-05-09T14:53:56Z")

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Correct this example is called an “over leveraged” pool.
