> For the complete documentation index, see [llms.txt](https://wealth-mountain.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wealth-mountain.gitbook.io/docs/staking/liquid-staking/terms-and-conditions.md).

# Terms & Conditions

### Staking

When a user creates a Liquid Stake in the Wealth Mountain platform, their BUSD is stored in a Smart Contract that utilizes the value to determine rewards distributions that are granted at the discretion of the Wealth Mountain team. 

The BUSD used to purchase Liquid Stakes is never under the custody or control of the Wealth Mountain Team. BUSD is kept in a Smart Contract that was specifically designed to only allow the user and owner of the BUSD to have control over this value.

### Fees

Whenever a Liquid Stake is created, a non-refundable 6% fee is sent to the Wealth Mountain Team. All fees generated by the Wealth Mountain Staking Platform are owned by the Wealth Mountain Team. Fees are required in order to participate in the Liquid Staking option. Fees are necessary to ensure that the Wealth Mountain Team continues to generate operating revenue and can build more leverage for the Wealth Portfolio. 

* There is a 6% fee to create a Liquid Stake
* There are no fees associated with Unstaking
* There are no fees associated with Claiming rewards from distributions 

### Risks

The Liquid Staking Smart Contract is designed to isolate all Liquid Staking BUSD. Rewards should never overlap with Liquid Staking capital.

* Withdrawals of rewards can never be prevented by the Wealth Mountain Team
* Unstaking of Liquid Staking BUSD can never be paused or prevented by the Wealth Mountain Team
* Liquid Staking BUSD is never under the custody of a centralized authority. Smart Contracts hold Liquid Staking BUSD and can never be altered, changed, or controlled. 
* Proof-of-Reserves can be found by simply viewing the Liquid Staking contract on BSC Scan. The entire balance of all active Liquid Stakes will be visible there. 
* By design, there will never be a situation where users are unable to unstake their initial BUSD used to create a Liquid Stake 

### Mechanics

When a user creates a Liquid Stake, a few things happen:

1. The users' BUSD is sent to the Liquid Staking Smart Contract
2. The Liquid Staking Smart Contract does the math to subtract 6% from the users' Liquid Stake
3. The Liquid Staking Smart Contract sends this exact 6% to the Wealth Portfolio

When the Wealth Portfolio sends a distribution to the Liquid Staking Smart Contract:

* A separate pool of BUSD is created within the Liquid Staking Smart Contract
* Eligible users can claim rewards from this separate pool until the pool is empty
* Rewards per user are calculated proportionately depending on pool size at the time of distribution and the individual users' total Liquid Stake value

When a user claims rewards from a given distribution:

* The Liquid Staking Smart Contract checks the distribution pool and sends the user their allocated rewards 

When a user unstakes their Liquid Stake from the Liquid Staking Pool: 

* The Liquid Staking Smart Contract sends the user their BUSD
* Everyone's percentage allocation of all rewards distributions goes up - as there is now one less participant