> For the complete documentation index, see [llms.txt](https://docs.tread.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tread.fi/tread-improvement-proposals/tip-2-tread-vault.md). # TIP-2: Tread Vault TIP-2 establishes the Tread Vault: a pass-through for exchange incentives. Any incentives or airdrops that tread.fi receives from an exchange are distributed to the users who generated them, in proportion to each user's [TIP-1](http://tip-1-fee-discounts.md) fee savings on that exchange. ### Why Perpetual DEXs run builder-code incentive programs, points campaigns, and token airdrops that reward the front ends routing volume to them. That volume comes from Tread users. Tread Labs does not keep these rewards. The Vault passes them through to the traders who earned them, weighted toward the TREAD holders whose activity Tread is built around. ### How it works 1. An exchange sends an incentive to tread.fi. This can be a token airdrop, a rebate, points converted to tokens, or any other reward paid to Tread as a builder or integrator on that venue. 2. The incentive is attributed to the exchange it came from. Rewards from Hyperliquid are distributed based on Hyperliquid activity, rewards from Extended based on Extended activity, and so on. Rewards are never pooled across venues. 3. Each user's share is their share of cumulative TIP-1 fee savings on that exchange. Fee savings are the difference between the base fee and the fee you actually paid after your TREAD holder discount, summed across all your trades on that venue since TIP-1 went live. 4. The reward is distributed pro rata. If you account for 2% of all TIP-1 fee savings ever generated on Hyperliquid, you receive 2% of any incentive Hyperliquid sends to tread.fi. #### Worked example An exchange sends tread.fi an airdrop worth 100,000 of its token. | User | Cumulative fee savings on that exchange | Share | Distribution | | ----- | --------------------------------------- | ----- | ------------ | | A | $6,000 | 60% | 60,000 | | B | $3,000 | 30% | 30,000 | | C | $1,000 | 10% | 10,000 | | Total | $10,000 | 100% | 100,000 | {% hint style="info" %} **A user who trades on that exchange but holds no TREAD has zero fee savings and receives nothing from that distribution, regardless of volume.** {% endhint %} ### What counts as fee savings Fee savings are only generated where TIP-1 applies: builder fees on the eligible perpetual DEXs listed in [TIP-1. ](/tread-improvement-proposals/tip-1-fee-discounts.md)You need both of the following on a given exchange to have a share: * TREAD in your Tread wallet at the daily snapshot, at least 1,000 TREAD (Tier 1). * Trading volume on that exchange routed through Tread while holding it. Savings accumulate for as long as TIP-1 is live. Moving TREAD out of your Tread wallet stops new savings from accruing but does not erase savings already recorded. {% hint style="info" %} Volume-tier savings do not count. Only the TREAD holder discount portion of your fee reduction is counted as TIP-1 fee savings. A Tier 5 trader with no TREAD pays a lower base fee but has no fee savings for Vault purposes. {% endhint %} ### Distribution cap Each user's distribution is capped at 100× their cumulative TIP-1 fee savings on that exchange, measured in notional value at the time of distribution. A user with $1,000 of fee savings on an exchange can receive at most $10,000 in value from any single distribution tied to that exchange. Tread Labs does not retain any portion of exchange incentives except in the case the rewards exceed 100 times the total dollar saved. ### Distributions Each distribution is announced by Tread Labs when an exchange incentive is received, with the following details published at the time: * The exchange and the incentive received * The snapshot date for cumulative fee savings * The form of the distribution (the asset as received, or an equivalent) and the destination wallet * The distribution date Distribution form and mechanics are determined per distribution, because incentive programs differ in what they pay out and how (vesting, lockups, chain). Where possible, distributions are sent directly to your Tread wallet with no claim required. {% hint style="info" %} **There is no claim website. Tread Labs will never ask you to connect a wallet or sign a transaction to receive a Vault distribution. Any site that does is a scam.** {% endhint %} ### **Distribution Records:**
To view your share of the savings pool select [**Points**](https://app.tread.fi/points) from the top home bar. From this page you will be able to see for each builder-fee exchange your: * Your fees saved * Trading volume * Share of savings pool. * Leaderboard ### Eligibility Users in restricted jurisdictions are not eligible for Vault distributions. Restrictions are consistent with the [Genesis Distribution Terms](https://app.tread.fi/points) that governed the TREAD airdrop. ### FAQ **Does Tread Labs keep any portion of the incentives?** No. Incentives are passed through in full, subject to the per-user cap described above. **What if an exchange pays incentives in points rather than tokens?** Points that later convert to a token are distributed when the token is received. Points that never convert have no distribution. **What if the incentive comes with a vesting schedule or lockup?** Tread Labs passes it through on the same terms it receives it, or on the closest terms the incentive's structure allows. Details are published with each distribution. **Is there a minimum share to receive a distribution?** No. Any user with TIP-1 fee savings on the relevant exchange receives their pro rata share. **I traded on an exchange before TIP-1 went live. Does that count?** No. Fee savings are recorded from the TIP-1 launch date onward. *** Nothing in this document creates an entitlement, a claim on any entity's assets, or any representation about the price of TREAD. tread.fi does not control whether, when, or in what amount any exchange pays incentives. Distributions occur only if and when an incentive is actually received, and Tread Labs may revise the mechanics by a future TIP. This page is for informational purposes only and does not constitute investment advice or an offer to sell or a solicitation to buy any asset.