# MFP Lock

### 1. What is MFP and how is it calculated

**MFP (Maximum Fair Price)** is an internal quality score for every server on the Clore.ai network.\
The algorithm considers **all key hardware characteristics**: GPU model and count, PCI Express version and lane width, internet-link speed, CPU model, and many other metrics.\
The more powerful and stable the configuration, the higher the MFP.\
The current upper limit is **65**.

<figure><img src="/files/OHxjKqCLCpsKGq4BJ7zi" alt=""><figcaption></figcaption></figure>

***

### 2. Why MFP Lock is needed

A score alone is not enough-the network must see that the owner **believes in the server** and is willing to back its quality with coins.\
A host therefore **locks** CLORE in MFP Lock, confirming the server's MFP and unlocking access to a share of each block reward.

***

### 3. Reward flows in a block

| Income source   | Share of emission | Explanation                                             |
| --------------- | ----------------- | ------------------------------------------------------- |
| **PoH Staking** | 20 %              | Users without servers can simply stake their coins here |
| **MFP Lock**    | 20 %              | Split equally: **Tier 1 (10 %)** and **Tier 2 (10 %)**  |

With a reward of 313 CLORE per block and 1 440 blocks per day, each basket (Tier 1 and Tier 2) receives **45 072 CLORE per day**.

***

### 4. How much must be locked

*Base rule: **1 MFP = 1 000 CLORE***.

| Tier       | Multiplier | Stake range     | Example at MFP = 20                     |
| ---------- | ---------- | --------------- | --------------------------------------- |
| **Tier 1** | 1×         | ≤ 100 % MFP     | ≤ 20 000 CLORE                          |
| **Tier 2** | 4×         | 100 - 500 % MFP | up to 80 000 CLORE more (total 100 000) |
| **Tier 3** | 2×         | 500 - 700 % MFP | up to 40 000 CLORE more (total 140 000) |

**Maximum total lock: MFP × 7 000 CLORE**

***

### 5. Daily-reward formula and limits

For each basket *k* ∈ {T1, T2}:

<figure><img src="/files/n5AVXsz3RSIuP3ZKKJIx" alt=""><figcaption></figcaption></figure>

#### Rent-price ceiling

A server cannot receive from **each** tier more than its daily rental price.\
For a rent of **300 CLORE / day** the maximums are:

| Source                  | Ceiling             |
| ----------------------- | ------------------- |
| MFP Lock Tier 1         | 300 CLORE           |
| MFP Lock Tier 2         | 300 CLORE           |
| **Total from MFP Lock** | **600 CLORE / day** |

Together with rent, a server rented out for 300 CLORE can earn **up to 900 CLORE per day**.

#### Burning surplus

Anything above these limits is automatically sent to a burn wallet.

***

### 5.1 Extra fee reduction through MFP Lock

In addition to emission rewards, MFP Lock provides a powerful benefit for hosts: **reduction of extra hoster fees** on non-CLORE currency orders.

When renters pay with Bitcoin or other non-CLORE currencies, an extra hoster fee (e.g., 15%) is deducted from the host's earnings. By locking CLORE across all three tiers, hosts can **reduce this extra fee to 0%**.

#### How the reduction works

Each tier contributes proportionally to how full it is:

| Tier       | Max Reduction | Capacity          |
| ---------- | ------------- | ----------------- |
| **Tier 1** | 30%           | MFP × 1 000 CLORE |
| **Tier 2** | 30%           | MFP × 4 000 CLORE |
| **Tier 3** | 40%           | MFP × 2 000 CLORE |
| **Total**  | **100%**      | MFP × 7 000 CLORE |

**Formula per tier:**

```
tier_reduction = round(fill_ratio × max_reduction_percent)
```

**Combined reduction:**

```
total_reduction = min(100, T1_reduction + T2_reduction + T3_reduction)
```

The reductions are **additive** - when all three tiers are fully locked, the total reduction reaches **100%**, eliminating the extra hoster fee entirely.

#### Example

Server with MFP = 20, Bitcoin order with 15% extra hoster fee:

| Lock State     | T1 Reduction | T2 Reduction | T3 Reduction | Total | Extra Fee |
| -------------- | ------------ | ------------ | ------------ | ----- | --------- |
| Empty          | 0%           | 0%           | 0%           | 0%    | 15%       |
| T1 full only   | 30%          | 0%           | 0%           | 30%   | 10.5%     |
| T1 + T2 full   | 30%          | 30%          | 0%           | 60%   | 6%        |
| All tiers full | 30%          | 30%          | 40%          | 100%  | **0%**    |
| T1 half only   | 15%          | 0%           | 0%           | 15%   | 12.75%    |

> **Key insight:** Even partially filling tiers provides proportional benefit. A host with just Tier 1 fully locked already saves 30% on extra fees.

#### What fees are NOT affected

* **Base marketplace fees** (10% on-demand, 2.5% spot) - these are reduced by [PoH](/proof-of-holding/overview.md), not MFP Lock
* **Renter extra fees** - only hoster extra fees are reduced
* **CLORE currency orders** - CLORE has 0% extra fee, so the reduction has no effect

***

### 6. The "Lock → Unlock" process

* **Lock** - The host locks the desired amount; 24 h later the server starts receiving rewards.
* **Unlock (per-tier).** Each tier has its own unlock period:

| Tier   | Unlock Period | What is returned  |
| ------ | ------------- | ----------------- |
| Tier 1 | 7 days        | Full Tier 1 stake |
| Tier 2 | 14 days       | Full Tier 2 stake |
| Tier 3 | 28 days       | Full Tier 3 stake |

When **"Unlock All"** is pressed, each tier's unlock timer starts simultaneously. The funds become available in stages:

* **Day 7** — Tier 1 stake returned
* **Day 14** — Tier 2 stake returned
* **Day 28** — Tier 3 stake returned

After each waiting period, the funds are automatically moved back to the system wallet.

> **Note:** You can only unlock tiers that have passed their waiting period. For example, if you locked 10 days ago, you can unlock Tier 1 (7 days) but must wait for Tier 2 (14 days) and Tier 3 (28 days).

***

### 7. Reward examples

*(all examples use a server rented out for 300 CLORE / day)*

| Scenario                                            | T1 pool share | T1 payout | T2 payout | **Total** | **Burned**               |
| --------------------------------------------------- | ------------- | --------- | --------- | --------- | ------------------------ |
| **A.** You are alone, Stake = 65 000 (T1 = 100 %)   | 100 %         | 300       | 0         | **600**   | 45 072 - 300 = 44 772    |
| **B.** 100 hosts, each 65 000                       | 1 %           | 300 (max) | 0         | **600**   | 45 072 - 30 000 = 15 072 |
| **C.** 99 × 65 000 and you 1 000                    | 0.01538 %     | 6.93      | 0         | **≈ 307** | pool burns ≈ 15 359      |
| **D.** You are alone, Stake = 325 000 (T1 + T2 max) | 100 %         | 300       | 300       | **900**   | 90 144                   |

#### Large scenario: **500 servers (MFP = 30), all rented at 300 CLORE / day**

* **150** servers - full Tier 1 (30 000 CLORE)
* **150** servers - half Tier 1 (15 000 CLORE)
* **150** servers - full Tier 1 + half Tier 2 (30 000 + 60 000 CLORE)
* **50** servers - full Tier 1 + full Tier 2 (30 000 + 120 000 CLORE)

| Group (count)        | Stake T1 / server | Stake T2 / server | T1 payout / server | T2 payout / server\* | **Total / server†** |
| -------------------- | ----------------- | ----------------- | ------------------ | -------------------- | ------------------- |
| Full T1 (150)        | 30 000            | -                 | **106.05**         | 0                    | **≈ 406**           |
| Half T1 (150)        | 15 000            | -                 | **53.03**          | 0                    | **≈ 353**           |
| Full T1 + ½ T2 (150) | 30 000            | 60 000            | **106.05**         | **180.29**           | **≈ 586**           |
| Full T1 + T2 (50)    | 30 000            | 120 000           | **106.05**         | **300.00**           | **≈ 706**           |

\* T2 payouts are capped at 300 CLORE / day.\
† Total = (T1 payout + T2 payout + rent 300 CLORE).

**Pool outcomes (45 072 CLORE / day each):**

* **Tier 1:** fully distributed - nothing burned.
* **Tier 2:** 42 043.2 CLORE paid → **3 028.8 CLORE burned**.

Even with 500 servers and strong competition, part of Tier 2 remains unclaimed and is burned daily, maintaining token scarcity and enhancing reward value.

> **Tier 3 reminder:** Tier 3 does not earn emission rewards. Its benefit is the extra hoster fee reduction described in Section 5.1.

***

### 8. Dynamic MFP changes

If the server configuration changes (GPUs added/removed, CPU swapped, etc.), the score is recalculated:

* **MFP rises** → any already-locked free coins automatically fill Tier 1 then Tier 2.
* **MFP falls** → excess stake moves to *unused lock balance*. **unused lock balance can be unlocked after 10 days.**

***

### 9. Fund security

* **Two-factor authentication.** Always enable 2-FA-it is the first and most important defense layer.
* **Cold & hot wallets.** Most assets are stored offline; hot wallets hold only the operational minimum.
* **2.5 years incident-free.** The platform has never been hacked; in any force-majeure the company covers user losses.
* **Unlock timers.** Even if an attacker initiates a withdrawal, the minimum 7-day period gives the owner time to react.

***

### 10. Why MFP Lock is profitable

* **Transparent economics.** Higher hardware quality and higher stake mean a larger share of the pool—no hidden tricks.
* **Guaranteed break-even.** A full Tier 1 covers the rental price; a filled Tier 2 doubles that bonus.
* **Extra fee elimination.** A fully locked server (all 3 tiers) pays 0% extra hoster fee on non-CLORE orders—making BTC rentals as profitable as CLORE.
* **Clear ceiling.** A server rented for 300 CLORE can earn up to **900 CLORE/day** from emissions (T1 + T2 + rent).
* **Network self-regulation.** Surplus rewards are burned, sustaining token scarcity and price stability.
* **Security.** Per-tier unlock timers (7/14/28 days), 2-FA, and cold storage protect the stake even if an account is compromised.

**MFP Lock** is more than a "lock coins" button. It rewards investment in quality hardware, stabilises the network economy, and turns hosting on Clore.ai into a predictable, secure revenue stream.

### <mark style="color:red;">**Important information:**</mark>

If you locked MFP and attempted self-renting (renting your own server from another account):\
• Both accounts are permanently banned. Unban is impossible.\
• All related GPUs (UUID) are blacklisted.\
• All funds on the account are blocked; no refunds will be issued.

> 📚 For background on how MFP evolved, see [Understanding Maximum Fair Price (MFP) on the CLORE Blockchain](https://blog.clore.ai/understanding-maximum-fair-price-mfp-on-the-clore-blockchain-the-shift-to-usd/)


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