Rewards and Buyback

This page defines the profit split behavior used by AIRTrading after profit realization.

High-level flow

When profit is realized (epoch settlement and/or eligible withdrawal profit logic):

1. apply protocol fee (if applicable to that path)

2. compute net profit

3. convert profit component to AIR3 (per protocol rule)

4. split net AIR3 allocation:

   • 50% buyback treasury

   • 50% users rewards

Split rule

Net profit split:

• 50% Buyback

• 50% Users

This split should be documented as a protocol parameter if governance may update it in the future.

User reward delivery model (recommended scalable approach)

To avoid iterating over all users on-chain, use an index-based claim model.

Concepts

• activeWeight = total participating weight (excluding users who requested withdrawal)

• rewardIndex = cumulative reward per unit weight

• userIndexLast = last claimed index per user

On epoch settlement

• rewardIndex += usersPartAIR3 / activeWeight

On user claim

• claimableAIR3 = userWeight * (rewardIndex - userIndexLast)

• update userIndexLast = rewardIndex

This supports scale and keeps on-chain cost manageable.

Withdrawal-specific positive PnL (if enabled)

For a withdrawal with positive realized PnL:

• capital/base amount can be returned in stable

• profit component can be converted to AIR3

• AIR3 split applies 50/50 buyback/users

• user receives only the users half of the profit component

This must be implemented consistently with epoch accounting to avoid duplication.

Treasury roles (conceptual)

• Buyback Treasury: receives buyback-side AIR3 allocation

• Rewards Pool: receives user-side AIR3 allocation for claim

Auditability requirements

Recommended emitted data on settlement:

• gross profit

• fee

• net profit

• buyback allocation

• users allocation

• conversion output (if swap performed)

• activeWeight used

• rewardIndex after update