Reward Distribution

Liqfinity uses a proportional pool model to calculate rewards for liquidity providers:

• Proportional Ownership: If the total liquidity pool is $1,000,000 and you’ve contributed $100,000, you own 10% of the pool. Rewards are distributed based on this share.

• Fee Distribution: 90% of all hourly base fees are allocated to the liquidity pool and distributed proportionally to liquidity providers. The remaining 10% is reserved for referral rewards. If referral rewards are not fully utilized (e.g., due to inactive referrals or lower-tier referrers), the unused portion is retained as platform revenue.

Example:

If the platform generates $100,000 in hourly fees:

• $90,000 (90%) is distributed to the liquidity pool. With a 10% share, you earn $9,000.

• $10,000 (10%) is reserved for referral rewards. Any unused portion is retained as platform revenue.

This model ensures fair compensation for liquidity providers, while the referral system incentivizes user growth and supports the platform’s financial sustainability.