# Bonus Points

**Bonus Points** are a core part of the Hyper-Strategies economic model, designed to align the interests of our users with the long-term growth of the platform.

When you make a deposit into a vault, a portion of that deposit is taken as a **Deposit Fee**. The entire amount of this fee is then credited directly back to you as Bonus Points, valued at a 1:1 ratio with USDC.

### Example: A $1,000 Deposit

1. You decide to allocate **$1,000** to the Core Vault.
2. The vault has a **20%** Deposit Fee, which is **$200**.
3. Your Tradable Capital becomes **$800** (this is the amount our strategies will trade with).
4. Your account is immediately credited with **200 Bonus Points** (worth $200).

### The Purpose of Bonus Points

This system allows us to cover the platform's significant operational costs—such as gas fees for sweeping funds, server costs, data feed subscriptions, and ongoing development—without directly taking from your principal investment. Your contribution is acknowledged and tracked through the Bonus Points system.

### How do I get value from Bonus Points?

Bonus Points are not directly withdrawable. Instead, they represent a claim on the future success of the platform.

As our trading vaults generate revenue from **Performance Fees** (fees on profits), the platform will periodically use a portion of this revenue to **"buy back"** Bonus Points from users.

When a buy-back occurs:

* A number of Bonus Points are removed from your account.
* The equivalent value in **USDC is added directly to your main "Available to Allocate" balance**.
* You also earn **1 XP** for every 10 Bonus Points bought back, helping you level up your [Account Tier](https://github.com/CryptoKage/HyperstrategiesDocs/blob/main/user-guides/account-tiers.md).
