> For the complete documentation index, see [llms.txt](https://alembic.gitbook.io/alembic-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://alembic.gitbook.io/alembic-docs/introduction/getting-started/user-guide/fees-and-rewards/reward-distribution.md).

# Reward Distribution

Rewards on Alembic Finance are **automatically distributed** to users based on their share of each vault or strategy. The system is designed to be transparent, fair, and efficient — ensuring every investor receives exactly what they’ve earned.

#### **How It Works**

* **Proportional Rewards:** Each participant receives rewards proportional to their contribution to the vault’s total value locked (TVL).
* **Automatic Compounding:** Many strategies automatically reinvest earned rewards to generate compound returns over time.
* **Multi-Token Rewards:** Depending on the vault, rewards may be distributed in stablecoins, governance tokens, or partner protocol tokens.
* **Claim Flexibility:** Users can claim rewards at any time via the Alembic dashboard, subject to network gas fees.

> *Example:*\
> If a vault earns 8% annual yield and you hold 10% of its total TVL, you receive 10% of all distributed rewards from that vault (minus applicable fees).


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