> For the complete documentation index, see [llms.txt](https://docs.gpu-fi.uk/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gpu-fi.uk/risks/economic-risk.md).

# Economic Risk

Explains how trading activity affects mining-pool funding and reward variability.

GPUFi mining rewards are not fixed. They depend on trading activity and the revenue entering the mining pool.

### The revenue dependency

```
Trading Activity
       ↓
3% Creator Tax
       ↓
25% of Tax
       ↓
Mining Pool
       ↓
Hourly Mining Rewards
```

The mining-pool allocation is calculated as:

$$
3% \times 25% = 0.75%
$$

The pool's tax-funded inflow therefore equals 0.75% of every trade. It depends directly on trading volume.

### What lower volume means

```
Lower trading volume
       ↓
Less creator-tax revenue
       ↓
Less mining-pool funding
       ↓
Potentially lower mining rewards
```

Higher volume can produce more tax revenue. It does not guarantee any particular reward. The market determines trading activity, and GPUFi does not control trading volume.

### No fixed APY

{% hint style="info" %}
GPUFi does not promise a fixed APY. Mining rewards vary because the pool inflow varies.
{% endhint %}

### Illustrative calculations

These examples show the tax allocation mathematics only.

| Daily trading volume | Creator tax at 3% | Mining-pool allocation at 25% of tax |
| -------------------- | ----------------: | -----------------------------------: |
| $30,000              |              $900 |                         $225 per day |
| $100,000             |            $3,000 |                         $750 per day |

They are not forecasts, targets, expected performance, or guaranteed returns.

### Break-even scenario

The source includes an illustrative break-even volume of approximately $74,000 per day. This scenario uses assumptions including approximately $1 million in lockup value, 10% of supply locked, and a 20% annual yield assumption.

It is a scenario calculation only. It is not a target, an expected trading volume, or a promised APY.

### Core limitation

The mining mechanism can distribute only what enters the pool. This is an economic property of the mechanism.

Next, [Hardware Risk](/risks/hardware-risk.md) explains the dependency between treasury accumulation and physical infrastructure.


---

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