> For the complete documentation index, see [llms.txt](https://docs.marinade.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.marinade.finance/marinade-protocol/protocol-overview/stake-auction-market/bonds-settlements.md). # Bonds Settlements {% hint style="info" %} **TL;DR:** Each epoch, Marinade charges the validator's bond for static bids (CPMPE × active stake) and dynamic commission differences. Settlements run automatically at the start of each epoch for the epoch that just closed. {% endhint %} ## Overview A settlement is the on-chain transaction Marinade creates each epoch to transfer SOL from a validator's bond to stakers, covering the validator's bid for the previous epoch's delegated stake. Settlements run automatically at the start of each epoch for the epoch that just closed. ### What Gets Charged Each epoch a validator receives Marinade stake, their bond is charged for two distinct components. * **Static bid (CPMPE, cost per 1,000 SOL of delegated stake per epoch):** A per-1,000-SOL charge based on the active Marinade stake delegated to you and the auction's realized yield for the epoch. * **Dynamic commission bid:** A charge based on the actual rewards earned that epoch and the difference between the validator's on-chain commission and the configured bond commission. These charges are calculated independently and applied together in the settlement transaction. ## Bonds Calculation Formula The bid charged each epoch combines the static bid component and the dynamic commission component. **Bid Charged** = **Static Bid** + **Dynamic Commission Bid** ``` Bid Charged = (Active stake from Marinade at end of epoch × Effective Bid) / 1000 + (Total Rewards Earned from Marinade Stakers × Commission Rate) ``` Where: * **Active stake from Marinade:** The total Marinade-delegated stake on the validator at the end of the epoch. * **Effective Bid:** The realized yield for the epoch in lamports per 1,000 SOL, derived from the auction. This is typically lower than the configured CPMPE since the last-price auction sets the realized yield to the lowest yield on the winning list. See [Stake Auction Market](/marinade-protocol/protocol-overview/stake-auction-market.md) for details on how realized yield is set. In source code, Effective Bid appears as `effBid` or `auctionEffectiveBidPmpe`. * **Commission Rate:** Calculated separately for inflation rewards, MEV (Maximal Extractable Value) rewards, and block rewards. Based on the difference between the on-chain commission and the configured commission in the bond. Marinade uses the lower value between the two (more favorable to stakers) as the rate stakers actually receive. See [Dynamic Bids](/marinade-protocol/protocol-overview/stake-auction-market/dynamic-bids.md) for full mechanics of the commission portion. ### Worked Example Consider a validator with the following configuration in an epoch: * **Active Marinade stake:** 100,000 SOL * **Configured CPMPE:** 0.10 SOL per 1,000 SOL per epoch * **Realized yield (effective bid):** 0.08 SOL per 1,000 SOL (auction floor) * **On-chain inflation commission:** 5% (validator keeps 5% on-chain) * **Configured bond inflation commission:** 3% (validator commits to keeping only 3%) * **Total inflation rewards earned from Marinade stake:** 50 SOL * **MEV and block rewards:** 0 (omitted for clarity) #### **Static bid charge** ``` Static Bid = (100,000 × 0.08) / 1,000 = 8 SOL ``` The validator is charged 8 SOL even though their configured CPMPE was 0.10. The auction settled at 0.08, so the validator is only charged enough to deliver the realized yield. #### **Dynamic commission charge** On-chain, the validator's 5% commission keeps 2.5 SOL out of 50 SOL of inflation rewards on Marinade stake (stakers receive 47.5 SOL on-chain). The bond commission of 3% means the validator commits to keeping only 1.5 SOL. The difference of 2% is charged from the bond and delivered to stakers via settlement: ``` Commission diff = (5% - 3%) × 50 SOL = 1 SOL ``` #### **Total settlement charge** ``` Total = 8 SOL (static) + 1 SOL (dynamic) = 9 SOL ``` The validator's bond is debited 9 SOL at the start of the next epoch. ### Where to View Settlements Settlement history is published in several places. * **PSR (Protected Staking Rewards) Feed Discord channel:** The [#psr-feed channel in Marinade Discord](https://discord.com/invite/yTdH8YkYKg) posts a per-epoch summary of all settlements, including totals by reason (Bidding, BondRiskFee, etc.) and per-validator amounts. Quickest way to see what was charged. * **Auction scores API:** returns the auction outcome including per-validator allocations and bids. Replace `X` with the target epoch. * **Pipeline outputs:** Each epoch's full auction output is committed in the [ds-sam-pipeline auctions folder](https://github.com/marinade-finance/ds-sam-pipeline/tree/main/auctions) under `/outputs/results.json`. * **Settlement data on Google Cloud:** Raw settlement JSON is published to the [marinade-validator-bonds-mainnet GCS bucket](https://console.cloud.google.com/storage/browser/marinade-validator-bonds-mainnet/) (Google login required). * **PSR dashboard:** The [PSR dashboard](https://psr.marinade.finance/) shows the validator's bond balance and recent activity. Refreshes every few hours, so use the auction scores API or pipeline outputs for the freshest data. ### Settlement Lifecycle Settlements have a fixed lifecycle from creation to expiry. * **Created at the start of the next epoch:** A settlement for epoch X is created at the start of epoch X+1, once the snapshot at the end of epoch X is processed. This is when the bond is debited. * **Active for 3 epochs:** During this window, stakers can claim their portion of the settlement. The 3-epoch claim window is defined in the on-chain Validator Bonds config (`epochsToClaimSettlement`). Stakers can begin claiming approximately 24 hours after the settlement is created, controlled by the `slotsToStartSettlementClaiming` parameter. * **Unclaimed funds return to the bond:** Any SOL in the settlement that is not claimed by stakers within the active window is returned to the validator's bond when the settlement expires. * **Extra SOL handling:** A settlement may contain slightly more SOL from the bond than the strict charge requires. This allows Marinade to enforce the on-chain minimum of 1 SOL per stake account during distribution. The unused remainder returns to the bond on expiry. To stay informed when settlements affect the bond, set up [Validator Bond Notifications](/marinade-protocol/protocol-overview/stake-auction-market/bond-notifications.md). ## Related Mechanisms The bond is the source for several distinct charges, each with its own trigger and formula. They can apply in the same epoch. * [**Activating Stake Fee**](/marinade-protocol/protocol-overview/stake-auction-market/activating-stake-fee.md)**:** Charged once when new stake activates, scaled by how far the validator bid above the clearing rate. * [**Bid Reduction Penalty**](/marinade-protocol/protocol-overview/stake-auction-market/bid-reduction-penalty.md)**:** Charged when a validator lowers their bid or raises their commissions after winning stake. * [**Bond Risk Reduction Mechanism**](/marinade-protocol/protocol-overview/stake-auction-market/bond-risk-reduction-mechanism.md)**:** Charged when a validator's bond is underfunded relative to the active stake they hold. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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