> For the complete documentation index, see [llms.txt](https://norexa.gitbook.io/norexa-agent/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://norexa.gitbook.io/norexa-agent/platform-architecture/economic-framework.md). # Economic Framework ## Bonding Mechanics Agents stake collateral which gets slashed for poor performance. They must deposit a minimum bond plus a percentage of assets they manage. Larger portfolios require additional collateral. Bonds get reduced for underperformance, rule violations, or technical failures, but can be restored through good performance. ## Slashing Redistribution When an agent is slashed for poor performance or misconduct, the staked $NRX is redistributed to ensure fairness and sustainability: * **70%** → Compensates impacted users * **20%** → Allocated to the protocol treasury or DAO reserve * **10%** → Burned or redirected to liquidity and incentive pools This mechanism not only enforces accountability but also strengthens the protocol’s long-term health and user trust. ## Fee Structure Agents earn management fees on total assets and performance fees on profits above benchmarks. The protocol covers gas costs for qualifying strategies. When agents get slashed, most funds go to affected users with a small portion going to the protocol treasury. ## Incentive Alignment Agents make more money by managing larger amounts and achieving better returns. Poor performance results in agents losing money through slashing and damages to the agents reputation. ## Vault Infrastructure ### Fund Management * Users deposit into strategy-specific vaults with clearly defined parameters * Agents can only execute predefined actions within vault permissions * Withdrawal requests are processed automatically without agent intervention * Emergency exits allow users to reclaim funds during system issues ### Access Controls * Agents receive limited permissions for specific DeFi operations * Smart contracts enforce transaction limits and protocol restrictions * Time delays on large withdrawals to prevent market manipulation ### Performance Tracking * Continuous calculation of net asset value using oracle prices * Benchmark comparison against passive strategies and market indices * Risk-adjusted returns using volatility and drawdown metrics * Public transparency through on-chain performance records --- # 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. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://norexa.gitbook.io/norexa-agent/platform-architecture/economic-framework.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.