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

# Binding & Rewards

This page explains how binding tokens works on Bound, how reward cycles are structured, and how rewards are claimed.

**Binding is a commitment mechanism first. Rewards are optional.**

***

## What Binding Means

Binding is the act of committing tokens to a specific hub.

When you bind tokens:

* They are locked or staked via smart contracts
* They become associated with a specific hub
* Your participation is visible as a signal of belief

Binding is **not**:

* Trading
* Lending
* A guarantee of returns

Only bind tokens you are comfortable committing.

***

## Bound Duration & Conditions

Each hub allows users to choose how long they want to bind tokens.

A **bound duration**:

* Is chosen by the user
* Can typically range from **1–52 weeks**
* Cannot be cancelled once tokens are bound

These rules are enforced by smart contracts and **cannot be changed retroactively**.

Always review a hub’s binding conditions before confirming.

***

## Reward Cycles

Some hubs distribute rewards through **reward cycles**.

A reward cycle:

* Is a time-boxed period (e.g. 1–8 weeks)
* Is configured by the hub owner
* Can be joined by users who were already bound before the cycle started

Once a reward cycle ends, users may claim rewards **proportional to their total hub influence**\
(base hub influence + boosts).

A cycle may define:

* Reward tokens
* Total reward amounts
* Reward boosts
* Eligibility criteria

Not all hubs run reward cycles.

***

## Hub Influence

**Hub influence** (sometimes called voting power) starts at 100% and decreases linearly to zero over the bound duration.

**Example:**

Bind **1,000 tokens for 10 weeks** →\
your base hub influence starts at **1,000** and drops to **0** after 10 weeks.

***

## How Rewards Are Earned

If a hub offers reward cycles:

* Eligibility is based on binding and participation
* Longer and more consistent commitment matters
* Additional factors (such as boosts) may apply

Rewards:

* Are defined by the hub owner
* May vary from cycle to cycle
* Are distributed only after a cycle ends

***

## Claiming Rewards

When a reward cycle ends:

1. Eligible users may claim rewards
2. Claiming requires an on-chain transaction
3. Gas fees apply

**Important:**

* Rewards are **not** automatically distributed

Always review claim details before confirming.

***

## Fees Related to Binding & Rewards

Depending on the hub and tier:

* A **deposit fee** may apply when binding tokens
* A **performance fee** may apply to distributed rewards

Fees:

* Are defined in advance
* Are enforced by smart contracts
* Are non-refundable once incurred

Refer to **Fees & Economics** for more details.

***

## Extending and Withdrawing

* Users can add more tokens or extend their bound duration to reset hub influence decay and stay eligible for rewards
* Tokens can only be withdrawn **after the bound duration ends**
* In emergencies, a hub owner may enable early withdrawal for everyone

***

## Risks to Understand

Binding and rewards involve risk.

You should understand that:

* Token values can fluctuate or become worthless
* Smart contracts may contain bugs
* Rewards and perks can change or stop
* Bound does not guarantee outcomes

***

## In Summary

* Binding commits tokens to a hub
* Reward cycles are optional and time-based
* Rewards must be claimed manually