Season and Epoch Accounting

The AIRTrading design adds a season/epoch accounting layer on top of the vault withdrawal model.

Why epochs exist

Epochs make profit accounting deterministic and auditable by creating periodic settlement windows.

At epoch end, the system can:

• realize PnL in stable (Option A model)

• apply protocol fee

• split net profit between buyback and users

• update rewards accounting for active users

Definitions

• Season: a larger logical period containing multiple epochs

• Epoch: a configurable settlement window (days or week, depending on volume and operational needs)

Option A settlement model (realized PnL in stable)

At the end of each epoch, the vault realizes PnL in stable by closing or reducing positions as needed.

This creates a distributable, deterministic result.

Epoch PnL calculation (conceptual)

• equityStart = vault value at epoch start

• equityEnd = vault value at epoch end after settlement

• epochPnL = equityEnd - equityStart

Settlement rules

If epochPnL <= 0

• epoch is settled

• no profit distribution

• losses remain reflected in vault accounting

If epochPnL > 0

1. apply protocol fee

2. compute net profit

3. split net profit:

   • 50% buyback

   • 50% users

4. convert profit legs according to protocol rules (stable -> AIR3 where applicable)

5. send buyback allocation and users allocation to the appropriate contracts/pools

Compatibility with manual withdrawals

This model is designed to be compatible with manual withdrawals with 7-day delay.

Critical rule:

• if a user submits WithdrawRequest during an epoch and is excluded immediately, they do not participate in the current epoch distribution

That user has already crystallized their exit value via pro-rata close.

Anti double-payment rule (must stay explicit)

The exclusion takes effect in the current epoch, not the next one.

Otherwise the user could be paid twice:

• once through pro-rata exit crystallization

• again through epoch reward allocation

Operational notes

Epoch duration can be configured based on:

• volume

• strategy cadence

• execution venue constraints

• desired user experience for reward frequency