Owning and upgrading · Chapter 02 / 11
How Vaults earn $LIT
Every Fuego has its own Vault. Once activated and eligible, it shares in available $LIT distributions according to its weight and how long that weight was active. You do not need a top tournament finish to take part.
Where the $LIT comes from
Fuego directs a share of qualifying protocol income toward buying $LIT for Vaults. The funding sources include applicable Kiln ETH fees, ETH fees earned by protocol-owned liquidity, royalties received and eligible referral revenue. DEX protocol fees have a separate allocation.
How protocol fee income is split
Only fees actually received by Fuego are allocated.
Qualifying ETH fees and income
- Vault distributions: 70%
- Company: 30%
DEX protocol fees
- Vault distributions: 60%
- LP depth: 10%
- Buy-and-burn reserve: 20%
- Company: 10%
These percentages apply to fees Fuego actually receives, not total trading volume or fees earned by other liquidity providers. They do not add a fee to ordinary trading on Lighter. Fees earned in $FUEGO by protocol-owned liquidity are retained by the protocol under the current policy.
How your Vault's share is calculated
| Fuego level | Base Vault weight |
|---|---|
| 1 | 1 |
| 2 | 2.5 |
| 3 | 5 |
| 4 | 8 |
Higher levels increase a Fuego's base weight. Eligible equipment can increase it further. The weights of all your activated Fuegos add together, so developing several Vaults builds your combined share.
Your distribution = available $LIT × your eligible weight-time ÷ everyone's eligible weight-time
Weight-time means weight multiplied by the time it was eligible. Ten identical Fuegos active for the same period contribute ten times the weight of one. A mid-period upgrade adds weight only from when it takes effect.
Sharing 600 $LIT between three Fuegos
No equipment effects. A level 3 active for half the period has the same weight-time as a level 2 active for the full period.
| Fuego | Base weight | Time active | Weight-time | $LIT received |
|---|---|---|---|---|
| Level 1, whole period | 1 | 100% | 1 | 100 |
| Level 2, whole period | 2.5 | 100% | 2.5 | 250 |
| Level 3, half period | 5 | 50% | 2.5 | 250 |
When funding reaches your Vault
Fees are collected and converted where needed. The net amount available after applicable costs is then allocated by eligible weight-time. Money awaiting conversion or distribution is not yet part of your Vault balance. Weekly Vault processing is planned; until its historical-weight and funding accounting is implemented, no distribution cadence or weekly amount is promised.
Vault distributions are separate from tournament prizes. You can activate eligible Fuegos without trading or delegating. More weight increases your share of the same funded pool; it does not create extra revenue.