> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ix.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Revenue & distributions

> How compute revenue is generated, split between investors and the protocol, and distributed on-chain.

IX RWA assets earn by renting out compute. That revenue, net of costs, is split between investors and the protocol and distributed on-chain to IXD holders in proportion to ownership.

## From gross rental to investor yield

```mermaid theme={null}
flowchart TD
    G[Gross rental revenue] -->|minus operator fee| N1[After operator fee]
    N1 -->|minus IX management fee| N[Net revenue]
    N -->|60 percent| I[Investor pool to IXD holders]
    N -->|40 percent| X[IX protocol]
```

<Steps>
  <Step title="Gross revenue">
    The asset's compute is rented at market rates over a period.
  </Step>

  <Step title="Net revenue">
    Operator and management fees are deducted to arrive at net revenue.
  </Step>

  <Step title="Split">
    Net revenue is divided between the investor pool and the protocol.
  </Step>

  <Step title="Distribution">
    The investor share is distributed on-chain to IXD holders, pro-rata to ownership.
  </Step>
</Steps>

## The split

The protocol targets a **60 / 40** split — **60% to investors**, 40% retained by IX — disclosed on every asset listing.

```mermaid theme={null}
pie showData
    title Net revenue split
    "Investors (IXD holders)" : 60
    "IX protocol" : 40
```

<Note>
  Yield and APY shown in the app are **model-based projections** derived from asset value, utilization assumptions, and the fee schedule. They are labeled as estimates and are not a promise of realized return. Realized distributions are reported separately once they occur.
</Note>

## How distributions are paid: Merkle claims

Distributions use a **Merkle-based claim** mechanism, which is gas-efficient and lets each holder claim independently:

```mermaid theme={null}
flowchart LR
    S[Ownership snapshot] --> M[Merkle tree of entitlements]
    M --> R[Root published on-chain]
    R --> F[Distribution funded]
    F --> C[Holder submits proof and claims]
    C --> V{Proof valid?}
    V -->|yes| P[Funds released to holder]
    V -->|no| D[Rejected]
```

<Steps>
  <Step title="Snapshot & tree">
    For a distribution, per-wallet entitlements are computed from ownership and encoded into a Merkle tree; its root is published on-chain.
  </Step>

  <Step title="Fund">
    The distribution is funded with the payout amount.
  </Step>

  <Step title="Claim">
    Each holder claims their share by submitting a Merkle proof; the contract verifies the proof and releases funds. Claims are recorded from the verified on-chain transaction.
  </Step>
</Steps>

## Auto-reinvest

Holders can opt into **auto-reinvest**, compounding distributions back into ownership rather than withdrawing. The toggle and its projection are available in the dashboard and activate with live distributions.

<Warning>
  **Status:** the distribution mechanism is implemented in the protocol contracts. The first **real** revenue distributions run as part of the verified money-path milestone on the [roadmap](/why-ix-rwa#roadmap). Until then, distribution figures in the app are illustrative of the model, not realized payouts.
</Warning>