# Profit Distribution

Resolv collateral pool regularly realizes regular profits (losses) in terms of USD equivalent. The changes to the collateral pool value come from:

* Rewards from staking ETH;
* Futures funding rate income (expense).

#### Calculation of profits (losses)

Profits (losses) are calculated by the protocol regularly at the end of each reward epoch. Reward epoch specifications:

| Epoch Duration         | 24 hours     |
| ---------------------- | ------------ |
| Epoch Start / End Date | 12:00:00 UTC |

#### Reward distribution

Profits are distributed as follows:

| Reward       | Profit portion                                                               | Allocated pro rata to |
| ------------ | ---------------------------------------------------------------------------- | --------------------- |
| Base Reward  | 76.5% (85% from 90%)\*                                                       | stUSR + RLP           |
| Risk Premium | 13.5% (15% from 90%)\*                                                       | RLP                   |
| Protocol Fee | 10%  \[[Check details](/litepaper/protocol-mechanics/fees.md#protocol-fees)] | Protocol              |

\*Profit portion updates will be introduced gradually across six weekly increments between 15 January and 19 February 2026, allowing yields to adjust smoothly.

<table data-full-width="false"><thead><tr><th width="173.20703125">Week</th><th width="223.0859375">Base Reward Profit Portion</th><th width="220.10546875">Risk Premium Profit Portion</th><th>Protocol Fee</th></tr></thead><tbody><tr><td><ol><li>15 Jan – 22 Jan</li></ol></td><td>65.25%</td><td>24.75%</td><td>10%</td></tr><tr><td><ol start="2"><li>22 Jan – 29 Jan</li></ol></td><td>67.5%</td><td>22.5%</td><td>10%</td></tr><tr><td><ol start="3"><li>29 Jan – 5 Feb</li></ol></td><td>69.75%</td><td>20.25%</td><td>10%</td></tr><tr><td><ol start="4"><li>5 Feb – 12 Feb</li></ol></td><td>72%</td><td>18%</td><td>10%</td></tr><tr><td><ol start="5"><li>12 Feb – 19 Feb </li></ol></td><td>74.25%</td><td>15.75%</td><td>10%</td></tr><tr><td><ol start="6"><li>19 Feb and onward</li></ol></td><td>76.5%</td><td>13.5%</td><td>10%</td></tr></tbody></table>

If losses are realized during a reward epoch, such losses are allocated to RLP.&#x20;

Reward distributions are reflected for stUSR/wstUSR and RLP differently:

<table><thead><tr><th width="205">Token</th><th></th></tr></thead><tbody><tr><td>stUSR</td><td>Quantity increases (value is 1 stUSR = 1 USR at all times)</td></tr><tr><td>wstUSR</td><td>Value increases</td></tr><tr><td>RLP</td><td>Value increases (decreases)</td></tr></tbody></table>

For more details on how the distributions are made, see [calculation example](/litepaper/protocol-mechanics/profit-distribution/calculation-example.md).


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