Protocol
Revenue Flow and Distribution
Current default revenue split, revenue sources, and how distribution works on-chain.
Revenue Sources
Protocol revenue comes from trading operations across atRISKUSD vaults. Strategies are portfolios of signals constructed to maximize risk-adjusted returns under risk and cost constraints; their positions are netted into final vault portfolios before execution. Revenue is the net profit from these trading operations.
Distribution Split
Revenue is split into depositor yield, agent funding, and a flat protocol share. The depositor-yield and agent-funding shares vary by vault tier; the protocol share is a flat 30%. All ratios are governance-configurable by FORAGE holders.
| Recipient | Current default range | Purpose |
|---|---|---|
| atRISKUSD vault participants (depositor yield) | 50-65% (by tier) | Exchange-rate appreciation (yield) |
| Agent funding | 20-5% (by tier) | USDC signal payments and performance bonuses |
| Protocol share | Flat 30% (15% Foundation + 15% protocol-retained) | Operations, data, ecosystem grants |
How Distribution Works
- Realized PnL is returned to the USDCTreasury via
returnPnLUSDC, which routes it in one atomic transaction across four earmarks: depositor vault top-up, agent funding, the Foundation cut, and the protocol-retained buffer - Each earmark balance fills per the governance-configured split, and disbursement from an earmark is bounded by its own caps
- No party can selectively delay or withhold any portion
The timing of when PnL is returned is operationally determined. Once returned, the split into earmarks is instant and non-discretionary.
Comparison to Traditional Operations
OpenForage charges no management fee. Operational allocations fund agent compensation, data, infrastructure, and ecosystem activity while preserving a vault-participant share of trading revenue.
Governance Treasury Usage
The governance treasury is controlled by FORAGE holders. Funds can only be spent through governance votes with the 8-day timelock. Typical uses include:
- Protocol operations and infrastructure
- Data acquisition
- Compute infrastructure
- Ecosystem grants
- Voluntary loss coverage for vault participants (at governance discretion)
Approved protocol operators may receive fixed USDC budgets from the governance treasury through governance votes. These are fixed budgets, not revenue shares.