Fees & protocol revenue

Every successful acquisition pays one fee, and that fee is cut up in a fixed order. Nothing here touches backing — depositor capital and fee income are separate accounting all the way down.

How one acquisition fee is split

Starting from the acquisition fee F:

1. rewards slice L  → the purchaser's $RIP buy allowance (dynamic, may be 0)
2. distributable    = F − L
3. protocol cut     = 1% of distributable
4. crown tithe      = 5% of what remains, if the crown is held
5. everything left  → split EQUALLY across all active positions

Step 5 is the important one. Every active position earns the same amount from a given acquisition, no matter how much SOL is backing it. A 1.00 SOL position and a 0.01 SOL position take an identical cut of the same pull.

Richly-backed positions still end up earning more, but for a different reason: their low selection weight keeps them in the pool across many more acquisitions. Size buys duration, not rate.

If the crown is vacant, the 5% tithe simply folds back into the equal split. Nothing is set aside or lost.

You only earn during your own tenure

Fee income uses an accumulator. When a position activates it records the accumulator's current value as its starting point; when it claims, it takes the difference. The practical consequences:

• ✦A position that joins after an acquisition earns nothing from it.
• ✦A position that has left earns nothing from acquisitions after it left.
• ✦The allocated position does take its share of the very acquisition that selected it, before it is removed.

Rounding is deliberately conservative — up on join, down on claim — so the sum credited to depositors can never exceed the sum collected.

Claiming

Two separate actions, both pull-based:

• ✦Claim listing fees harvests earnings from your active positions into your credit balance without touching the positions themselves.
• ✦Withdraw earnings moves that credit balance to your wallet.

Refunds from failed acquisitions land in the same credit balance. Nothing is ever pushed to you, so a recipient who cannot receive can never stall the queue for everyone else.

Where protocol revenue comes from

Four streams, none of which are backing:

1. 1% of every acquisition fee.
2. 1% of a position's value when a purchaser keeps the NFT, taken from the depositor's return.
3. The retained 15% settlement discount, when a purchaser accepts the standing bid and retention is on (the default).
4. The 1% swap fee on the $RIP market, which flows to its own fee wallet.

Paying out protocol revenue

The payout instruction is permissionless — anyone can trigger it. A configurable slice (default 0%) is recycled into the $RIP buyback reserve, and the rest is sent in full to the protocol's payout address — a plain wallet configured on the flagship pool. There is no further on-chain split of protocol revenue.

Creator commission

Pools created permissionlessly route 40% of that pool's protocol fee take to the pool's creator instead of the protocol — the 1% acquisition cut, the 1% keep-settlement cut, and the retained settlement discount all split 60 / 40. The creator pulls their accrued commission themselves. Admin-created pools have no creator and keep the full 100%. See Create a pool.