APR is seductive because it looks like a simple answer. But APR is not a condition. APR is a measurement of activity that already happened.
In stressed regimes, activity can rise dramatically. That pushes APR higher at the same moment structural risk rises.
APR often spikes during volatility expansion: liquidations, hedging, rotation, and panic all increase volume. That volume generates fees — but it also generates range breaks and inventory drift.
Fees accrue in small increments. Structural losses can occur in large jumps when price exits and persists. A week of great fees can be erased by a short period of range rejection.
APR is not ignored. It is contextualized. It is evaluated after structure confirms the environment can support a range. If structure fails, APR is treated as hazard pay, not opportunity.
High APR is not a green light. It is a question: “What risk is the market paying you to absorb?”