> ## Documentation Index
> Fetch the complete documentation index at: https://docs.aura.markets/llms.txt
> Use this file to discover all available pages before exploring further.

# Rewards & Incentives

> Creator fee shares, dispute voter rewards, and the liquidity rewards program.

Aura offers compelling rewards and incentives to encourage active
participation, accurate predictions, and effective governance within the
community.

## Market creator rewards

Market creators are essential to the Aura ecosystem and earn a share of
every trade on the markets they spawn:

* **Tier-scaled share** — creators receive between **1%** and **30%** of
  the 2.5% trading fee, scaling with their staked \$AURA tier.
* **Paid in USDT** — fee shares are distributed in USDT and accrue with
  every fill, claimable at any time.

| Tier       | Creator's cut of the trading fee |
| ---------- | -------------------------------: |
| Degenerate |                              30% |
| Diamond    |                              22% |
| Platinum   |                              16% |
| Gold       |                              11% |
| Silver     |                               7% |
| Bronze     |                               3% |
| Iron       |                               1% |

The remainder of the fee flows to the protocol treasury, which funds
liquidity rewards, dispute incentives, referral payouts, and ongoing
development.

## Dispute voter rewards

Aura's dispute system rewards voters who back the correct outcome — but it
does so through **slashing**, not by skimming USDT fees. The result is
strictly aligned: the wrong side of a controversial market literally
funds the right side.

* **Wrong-side voters** — anyone who reveals a vote for the losing
  outcome has a portion of their vaulted \$AURA slashed.
* **Silent stakers** — voters who committed but never revealed (or never
  committed at all) are penalized too, since silent voters undermine the
  oracle.
* **Slashed \$AURA** flows into a per-market **penalty pool**.
* **Winning voters** claim from the pool, weighted by their voting tier.

Because the pool is denominated in $AURA, dispute voters earn $AURA — a
direct tie between governance participation and protocol ownership. See
[Resolution & Disputes](/markets/resolution-and-disputes) for the full
flow.

<Warning>
  Voting on a dispute is not free. If you back the wrong side, **you lose
  \$AURA**. Vote only on markets where you've done the homework.
</Warning>

## Referral rewards

Refer a trader to Aura with your unique referral link, and you earn **10%
of the treasury's share** of every trade they ever make on Aura. Payouts
are claimable directly from your dashboard.

## Liquidity rewards

Aura runs a **daily liquidity rewards program** to keep markets tight and
tradeable. Makers who post qualifying resting limit orders near each
market's true midpoint earn a share of a daily USDT reward pool.

### Overview

By quoting on the order book, liquidity providers are automatically
eligible. The program is designed to:

* Strengthen liquidity across all markets
* Maintain liquidity throughout each market's lifecycle
* Encourage balanced, midpoint-adjacent quoting
* Support real trading activity
* Discourage obvious reward farming

This design draws from proven LP incentive frameworks and is adapted for
Aura's binary markets with distinct YES/NO books.

### Funding & payouts

|                        |                                                                        |
| ---------------------- | ---------------------------------------------------------------------- |
| Trading fee            | **2.5%** on executed volume, collected in USDT                         |
| Liquidity rewards pool | **10%** of trading fees                                                |
| Daily pool             | **0.25%** of executed volume for the day                               |
| Payouts                | Daily, distributed automatically to the wallet that provided liquidity |

### Adjusted midpoint (anti-manipulation)

The midpoint used for scoring is computed **after** filtering out small
"dust" orders below a minimum incentive size. This prevents tiny orders
from shifting the midpoint and farming rewards.

### Scoring

Orders are scored by distance from the adjusted midpoint and by size.
Closer quotes earn sharply more rewards.

| Variable    | Description                                      |
| ----------- | ------------------------------------------------ |
| `S`         | Order position scoring function                  |
| `v`         | Max spread from midpoint                         |
| `s`         | Spread from adjusted midpoint                    |
| `b`         | Market multiplier                                |
| `c`         | Single-sided penalty (`3.0`)                     |
| `Q_one`     | Points on book one                               |
| `Q_two`     | Points on book two                               |
| `Q_min`     | Two-sided score                                  |
| `Q_normal`  | Normalized score                                 |
| `Q_epoch`   | Epoch score                                      |
| `Q_final`   | Final reward share                               |
| `BidSize`   | Size of bid orders at a price level              |
| `AskSize`   | Size of ask orders at a price level              |
| `Spread_m`  | Distance from midpoint for market `m`            |
| `Spread_m'` | Distance from midpoint for the complement market |

**Equation 1 — order position score:**

$$
S(v,s) = \left(\frac{v - s}{v}\right)^2 \cdot b
$$

**Equation 2 — book one points:**

$$
Q_{one} = \sum S(v, Spread_m) \cdot BidSize_m + \sum S(v, Spread_{m'}) \cdot AskSize_{m'}
$$

**Equation 3 — book two points:**

$$
Q_{two} = \sum S(v, Spread_m) \cdot AskSize_m + \sum S(v, Spread_{m'}) \cdot BidSize_{m'}
$$

**Equation 4 — two-sided score:**

If midpoint is between 0.10 and 0.90:

$$
Q_{min} = \max\!\left( \min(Q_{one}, Q_{two}),\ \max(Q_{one}/c,\ Q_{two}/c) \right)
$$

If midpoint is below 0.10 or above 0.90:

$$
Q_{min} = \min(Q_{one}, Q_{two})
$$

**Equation 5 — normalize across makers:**

$$
Q_{normal} = \frac{Q_{min}}{\sum Q_{min}}
$$

**Equation 6 — sum across the epoch:**

$$
Q_{epoch} = \sum Q_{normal}
$$

**Equation 7 — final share of pool:**

$$
Q_{final} = \frac{Q_{epoch}}{\sum Q_{epoch}}
$$

**Daily reward for a maker:**

$$
Reward = Q_{final} \cdot DailyPool
$$