# Reward Distribution

The protocol net income (including handling fee) will distribute to PEX staking holders, PLP staking holders and traders by a specific ratio. The reward distribution mechanism ensures fair and transparent rewards for both LP and Governance token staking. The formula for fee distribution is suggested as follows:

After referral bonus and keeper operation cost:

| Trader pool (for the selected trader)  | X% (Depends on the protocol performance) |
| -------------------------------------- | ---------------------------------------- |
| PEX pool (for stPEX and stPRT holders) | M% = 0.3\*(100%-X%)                      |
| PLP pool (for PLP holders)             | N% = 0.7\*(100%-X%) (>expected APR P%)   |

<figure><img src="https://1725591073-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FhNulaXLxIZTSfT6mGeYY%2Fuploads%2FWENjtxK1DnDdAf5l4a9B%2FFlow%20Diagram%206.png?alt=media&#x26;token=603cc827-8901-432c-b71a-3928eb59a5f2" alt=""><figcaption></figcaption></figure>

To guarantee a P% APR for PLP holders:

**If N < 30%, the system will automatically maintain N = 30% with the Emission.**

* Reward Calculation: The platform periodically recalculates reward rates for both LP and Governance token staking based on real-time market conditions and platform metrics.
* Auto-Equilibrium Engine Role: The Auto-Equilibrium Engine (AEE) plays a crucial role in adjusting reward rates by monitoring market conditions and platform data. This ensures that users receive competitive and sustainable rewards for their participation in staking activities.
* Claiming Rewards: Users can view their earned rewards through an intuitive dashboard and claim their rewards at any time, providing flexibility and convenience.