Technical details
BTC profit-retention formula
After applying the 0.2-basis-point adverse closing-price buffer, profit is multiplied by:
retained_profit_coefficient = 0.9 / (1 + 1 / (price_change * 15,000) + 100,000 / (10^6 * price_change * 814.598))
price_change is expressed as a fraction: 0.005 means a 0.5% movement. The coefficient depends on the price movement, not position size. Under the BTC settings, it approaches a maximum of 90% before the 2% profit fee.
Declining mint curve
Below $2 million in book LP, the rate is 100 TACO per $1 of minting base. In the declining phase:
R = 100 * (S / (S + H))^2 · S = $120 million · H = cumulative minting base since book LP first crossed $2 million · R = TACO per $1 of minting base, before holding-time weighting
H only increases. Payouts and overflow reduce book LP but not H. If book LP falls below $2 million, the rate returns to 100 while cumulative progress remains recorded. A loss that crosses the $2 million line is split into two parts; in a batch close, the batch's payouts are subtracted first. The curve is charted under TACO and minting.
Holding-time weight
w = min(holding_time / T, 1), T = 10 minutes TACO minted = minting_base * R * w
Locked staking weight and early-exit penalty
weight = amount * (1 + 3 * weeks_remaining / 52) penalty = amount * 0.5 * weeks_remaining / 52 (burned; maximum 50%)
Onchain settlement processing
While claims are queued, new losses flow to the pending repayment pool. The keeper calls harvest to process claims in order. Profit fees remain available for queue repayment; loss and liquidation fees are not collected for staking distributions under those conditions.