Epochs and payouts

Daily epochs.

Once per day, the Distributor closes an epoch: pool fees and idle lending yield are harvested, accounted against basket weights, and assigned to holders pro rata. The epoch boundary, the harvest transaction, and the resulting balances are all on chain.

The holder's choice.

Each holder elects, per epoch, one of two treatments: compound — the share is minted back into index shares — or single-ticker payout — the share is paid out in one Stock Token of the holder's choosing. The election persists until changed.

How single-ticker payout executes.

At the epoch close, harvested fees destined for single-ticker payouts are swapped into the chosen Stock Tokens through the same pools the Engine quotes, under published slippage bounds. If a swap cannot execute within bounds, the affected payout carries to the next epoch rather than executing badly.

The tracking difference.

Providing liquidity is not the same as holding. The difference between the vault's realized performance and a hold-only portfolio of the same weights — fees earned minus adverse selection paid — is published every epoch. If the hook is not paying for the risk it prices, that number will say so.

No dust.

In practice: payouts smaller than the cost of their own transfer are not force-distributed. They accrue to the holder's balance and pay out once they clear the published minimum. Nothing is rounded away; small balances wait, they do not disappear.