Fee Distribution & Rewards

ALPHA accrues value through two channels: SUI rewards paid to stakers, and buy pressure from protocol fee revenue.

Fee Distribution

The 20% performance fee splits this way:

• 50% → ALPHA Vault Rewards. Paid to ALPHA Vault stakers in SUI, distributed every Sunday.
• 20% → AlphaFi Reserve. Held by the protocol as a financial cushion.
• 5% → Liquidity. Deepens the ALPHA-SUI trading pool.
• 25% → Operations. Funds team operations, audits, partnerships, and infrastructure.

Example

Suppose AlphaFi has $20M TVL earning an average 30% APY in the underlying pools. Annual gross yield is $6M. The 20% performance fee = $1.2M / year.

Of that:

• 50% ($600K/year) → SUI rewards to ALPHA Vault stakers
• 20% ($240K/year) → AlphaFi Reserve
• 5% ($60K/year) → ALPHA-SUI liquidity
• 25% ($300K/year) → Operations (team, audits, partnerships, infrastructure)

So roughly $600K/year in SUI flows to ALPHA stakers at $20M TVL. The amount scales with TVL.

(Numbers are illustrative. Actual TVL, APYs, and allocations vary.)

The fee → reward flywheel

1. A user deposits in a Strategy vault. The vault generates yield.
2. AlphaFi takes a 20% performance fee on that yield (see Strategies → Fees).
3. The fee is split — part of it pays SUI rewards to ALPHA Vault stakers, part is used to buy ALPHA on the open market, and part funds operations and reserves.
4. As TVL grows, fee revenue grows, and so do SUI rewards and ALPHA buys.

The rewards are funded by protocol revenue, not by minting new ALPHA.

Supply Dynamics

• The contract cannot mint new ALPHA. The 10M cap is final.
• Vesting unlocks follow a published schedule.
• Team tokens have a 300-day cliff before any unlocks.
• SUI rewards continue as long as the protocol generates fees, independent of ALPHA price.