# 📈 APY, Bonuses & Penalties

### <mark style="color:$primary;">Lock Durations and APY</mark>

| Duration |  APY |
| -------- | ---: |
| 30 Days  |   5% |
| 180 Days |  35% |
| 365 Days | 110% |

### <mark style="color:$primary;">Why longer duration matters</mark>

RICO uses time-weighted incentives:

* shorter staking periods offer lower yield
* longer staking periods offer higher reward potential

This is designed to encourage long-term commitment and reduce short-term speculative behavior.

### <mark style="color:$primary;">Bonus Incentives</mark>

Larger staking positions may qualify for additional bonuses:

* **15,000+ RICO** → **+1% bonus**
* **70,000+ RICO** → **+5% bonus**

These bonuses are designed to strengthen long-duration and high-conviction participation.

### <mark style="color:$primary;">Early Unstake Mechanics</mark>

If a user exits before maturity:

* ❌ 30% penalty applies
* 🔥 15% is burned
* 💰 15% is redistributed to active stakers
* ❌ no maturity reward or bonus is earned

### <mark style="color:$primary;">Why this system is powerful</mark>

This creates several effects at once:

* discourages panic exits
* creates deflation
* rewards patient holders
* redistributes value from impatient actors to committed ones

<mark style="color:$success;">Next: 🔁 Restaking & Compounding</mark>