# Loss-Mined Rewards (LMR)

Trading is inherently risky. Artura plans on distributing a large part of the token supply via retroactive airdrops of **locked BTP** with a call option to purchase the **BTP** at a discount. 

**Example:** Let's say John opens a position of **1000 USDT** on $MUBI at 1000x leverage. The current price of $MUBI **is** $0.1333. This position has a liquidation price of $0.13428. John gets liquidated shortly after opening the position. He has the opportunity to get a retroactive airdrop of **locked BTP** with a **call option** to unlock, giving him an opportunity to become a staker or pay a certain fee to cash out. 

Instead of traditional emissions in the form of $BTP that could be immediately dumped into the market, liquidity is incentivized through $oBTP, which is the the option call version of $BTP. Essentially, someone with $oBTP in their possession can do three things with it:

*1.) Hold $oBTP for autocompounding rewards*

Thanks to our revolutionary tokenomics, users don't have to do anything with their bought or earned $oBTP. The underlying $BTP will be staked into the vault. The vault will use the underlying $BTP to vote, claim rewards, market buy more $BTP and increase the value of $oBTP by the same margin.

This is especially valuable in the high-gas environment of Ethereum. LPs can simply let their liquidity rewards accrue, confident that their $oBTP rewards are themselves farming more value for them.

This autocompounding rewards mechanism is explained in detail in the next section.

*2.) Exercise the option and purchase $BTP 1:1 at a discount with $USDT*

* example - current $oBTP discount is 70%. Trader A has 100 $oBTP tokens from emissions (let's say market price of $BTP is $1 for this example). He decides to exercise his option and redeem his $oBTP for $BTP. He will pay $30 in $USDT tokens, and receive 100 $BTP.

When exercising an $oBTP option, the “discount” paid upfront by a user is split 75/25.

75% goes to staked $BTP holders, 25% goes to the treasury.

*3.) Convert $oBTP to max locked $BTP 1:1*

If the user decides to convert their $oBTP to locked $BTP, there is no fee to do so. This entitles the user to begin earning vault yields with their BTP and earn massive real yields as a result of Artura's efficient fee and revenue generation mechanisms.


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