Revenue Distribution

Revenue generated from protocol investment strategies is distributed dynamically and in multiple destinations, but they can be described into three main groups

• The majority of revenue will be used to support the insurance pool as insurance fees. This means that the exact percentage of distribution will be dynamically adjusted based on liquidity pool size and overall asset size, which it must cover. At the initial stage, the percent will be set to 60% of the revenue.

• If the insurance pool is big enough to support full Vaults assets, revenue will be distributed to holders. This distribution allows us to pay a premium on assets that they are holding in protocol. At the initial stage, the percentage will be set to 20% of the revenue.

• The remaining 20% of the revenue will be taken as a protocol fee and will be used to pay dividends for project token holders, buy out project tokens from the market, and support other protocol operations. At the initial stage, while we do not have tokens, this part of the revenue will also be redirected to the insurance pool. Resulting in a total of 80% of revenue at the start going to the insurance pool.