Profit Sharing Curve

Profit Sharing Curve

When there are 2 or more buyers, the profit sharing between post buyers, the creator and the protocol follows the curve below.

Note that the curve below is for illustrative purpose only, based on how many shares have been bought, the shape of the curve can change dynamically.

The x-axis represents how early you are to buy the post. When the post is closed, all shares will fall onto 0 < x < 1.

The y-axis represents how much profit you will earn. When the post is closed, all shares will fall onto 0 < y < 2.

When y > 1, the share makes a profit in ETH; when y < 1, the share makes a loss in ETH.

As you can see from the graph, all you need to do is don't be mid curve.

Out of the total profit which is all the area of y > 1, 10% goes to the creator and becomes Creator Revenue, 10% goes to the protocol and becomes Protocol Revenue. The remaining 80% stays with post buyers and become their Winnings. Note that the 10% creator revenue and protocol revenue do not come from the entire pool, they only come from the winners' profit (total winnings - cost of shares), for the entire pool, the total profit shared with creator and protocol is less than 5%.

Single Buyer Posts

For posts with only 1 buyer, profit is still shared with the creator and protocol. A fixed 5% of the total pool is shared with the creator and 5% is shared with the protocol.

You can check your Winnings, Creator Revenue and Funds in Pools not yet distributed in the Bag tab of the EarlyFans app.

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