# What are the market scenarios?
> The five scenarios that adjust hourly-rate decline, depreciation, and operating costs.
Source: https://help.computelabs.ai/fil/docs/financing-platform/for-investors/market-scenarios
Language: fil

Each scenario applies a different assumption for how GPU hourly rates decline each year, along with matching adjustments to depreciation and operating costs.

| Scenario | Hourly rate decline | Character |
|---|---|---|
| **Severe Decline** | 25% per year | Rapid price compression and faster hardware turnover. |
| **Challenging** | 18% per year | Competitive market pressure with moderate demand reduction. |
| **Steady** (default) | 15% per year | Balanced conditions with consistent moderate growth. |
| **Favorable** | 12% per year | Accelerating demand and sustainable premium pricing. |
| **Exceptional** | 8% per year | Demand far exceeding supply for a limited period. |

The Steady scenario is the baseline used for the **Steady Market IRR** shown on deal pages. **IRR Uncertainty** in the same settings card widens or narrows the range around the headline figure.

Scenarios are illustrative assumptions for comparison, not forecasts.