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

# Staking and payouts

> How the monthly yield is calculated and credited.

## Monthly distribution

1. Each month, the vault totals the net interest it actually received, after fees, servicing and the first-loss reserve.
2. That amount is divided pro rata across **all** shUSD outstanding.
3. **Staked shUSD** receives its share in cash, weighted by the time it was actually staked during the month. A minimum qualifying staking time applies. \[TBD: publish exact rule]
4. The share belonging to **unstaked shUSD** (and non-qualifying time) stays in the vault and raises NAV.

## Credited balance

The cash yield is credited to the staker's balance in the app. It does not expire and can be withdrawn at any time or left to accumulate.

## Auto-compound (planned)

Stakers are planned to be able to auto-compound: credited yield is used to mint and stake more shUSD. \[TBD]

## Unstaking

\[TBD: unstaking process and any cooldown]


This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.