> For the complete documentation index, see [llms.txt](https://docs.clore.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.clore.ai/for-hosts/mfp-lock-a-complete-breakdown-of-mechanics.md).

# 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 **200**.

<figure><img src="https://2864042869-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FbyNlC5NV8aIpXnc76G7w%2Fuploads%2FHmRh9u69IiEk15qd635B%2FCLORE%20MFP%20Lock%20(3).png?alt=media&amp;token=1e16d269-c438-4465-b2c4-10fc8511acce" 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

{% hint style="info" %}
**New requirements from September 30, 2026.** When MFP launched, CLORE was trading roughly 9× higher than in September 2026, so the amounts behind each tier now mean far less than intended. The requirements are being raised gradually, step by step. Until September 29, 2026 they were 1 000 / 4 000 / 2 000 CLORE per MFP (7 000 in total).
{% endhint %}

*Base rule from September 30, 2026: **1 MFP = 2 000 CLORE in Tier 1, 4 000 in Tier 2 and 3 000 in Tier 3***.

| Tier       | CLORE per 1 MFP | Stake range                | Example at MFP = 20                     |
| ---------- | --------------- | -------------------------- | --------------------------------------- |
| **Tier 1** | 2 000           | up to 2 000 × MFP          | ≤ 40 000 CLORE                          |
| **Tier 2** | 4 000           | 2 000 × MFP to 6 000 × MFP | up to 80 000 CLORE more (total 120 000) |
| **Tier 3** | 3 000           | 6 000 × MFP to 9 000 × MFP | up to 60 000 CLORE more (total 180 000) |

**Maximum in the tiers: MFP × 9 000 CLORE.** Tiers fill in order: Tier 1 first, then Tier 2, then Tier 3. CLORE locked beyond the tiers waits in the standby balance (see Section 6.1 below).

***

### 5. Daily-reward formula and limits

For each basket *k* ∈ {T1, T2}:

<figure><img src="https://2864042869-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FbyNlC5NV8aIpXnc76G7w%2Fuploads%2FnUd7IPnTwTiwmLidsTJR%2F1.png?alt=media&amp;token=496662b0-fdc0-44d7-aeae-7a46c397b4d4" 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 (capacities from September 30, 2026):

| Tier       | Max Reduction | Capacity          |
| ---------- | ------------- | ----------------- |
| **Tier 1** | 30%           | MFP × 2 000 CLORE |
| **Tier 2** | 30%           | MFP × 4 000 CLORE |
| **Tier 3** | 40%           | MFP × 3 000 CLORE |
| **Total**  | **100%**      | MFP × 9 000 CLORE |

Only CLORE sitting in the tiers counts. The standby balance (Section 6.1) gives no reduction until it moves into a tier.

**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 | 10 days       | The Tier 1 part of the unlock |
| Tier 2 | 20 days       | The Tier 2 part of the unlock |
| Tier 3 | 30 days       | The Tier 3 part of the unlock |

* **Partial unlock.** You choose how much CLORE to unlock: all of it or just a part. The amount is taken from the longest-delay tier first (Tier 3, then Tier 2, then Tier 1), and each part comes back after its own tier's period. All timers start when you request the unlock.

**Example:** MFP = 20 with all tiers full (40 000 + 80 000 + 60 000 = 180 000 CLORE). Unlocking 70 000 CLORE takes 60 000 from Tier 3 and 10 000 from Tier 2:

* **Day 20**: 10 000 CLORE (Tier 2 part) returned
* **Day 30**: 60 000 CLORE (Tier 3 part) returned

The server keeps 110 000 CLORE locked: Tier 1 full and 70 000 in Tier 2.

Unlocking the whole lock returns the funds in stages:

* **Day 10**: Tier 1 stake returned
* **Day 20**: Tier 2 stake returned
* **Day 30**: Tier 3 stake returned

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

> **Note:** A tier unlock becomes available 24 hours after the server's lock starts, and can be requested at most once every 24 hours per server; unlocking the standby balance counts toward this limit too. Unlocks started before the current periods took effect keep their original dates.

> **Tip:** If the server has a standby balance, freed tier space is refilled from standby automatically. To take everything out, unlock the standby balance first, then unlock the tiers 24 hours later.

#### 6.1 Lock ahead: the standby balance

You can lock more CLORE on a server than its current MFP uses. The limit for every server is what a server at the maximum MFP (200) can hold in its tiers: 200 × 9 000 = **1 800 000 CLORE** from September 30, 2026 (1 400 000 before), counting the tiers and the standby balance together.

* CLORE above the server's current tier capacity (MFP × 9 000) goes into a **standby balance**, previously labelled "unused lock balance".
* A server needs an MFP above 0 to accept a lock, so a hidden server can't be locked until it is listed again.
* Standby **earns no emission rewards and gives no fee reduction** by itself.
* Standby **moves into the tiers automatically** (Tier 1, then Tier 2, then Tier 3) as soon as the server has room: when its MFP rises, when the tier requirements rise, or when a partial unlock frees space. The platform checks for room every 10 minutes.
* **Why lock ahead:** as the requirements per MFP rise, the tiers grow and the standby balance fills them, so your fee reduction stays intact as long as standby covers the increase.
* **Unlocking standby** can be done at any time and takes **30 days**.

***

### 7. Reward examples

*(all examples use servers rented out for 300 CLORE / day and the requirements from September 30, 2026. In scenarios A to D the servers have MFP = 65, so a full Tier 1 is 130 000 CLORE and a full Tier 2 another 260 000)*

| Scenario                                            | T1 pool share | T1 payout | T2 payout | **Total** | **Burned‡**              |
| --------------------------------------------------- | ------------- | --------- | --------- | --------- | ------------------------ |
| **A.** You are alone, Stake = 130 000 (T1 = 100 %)  | 100 %         | 300       | 0         | **600**   | 45 072 - 300 = 44 772    |
| **B.** 100 hosts, each 130 000                      | 1 %           | 300 (max) | 0         | **600**   | 45 072 - 30 000 = 15 072 |
| **C.** 99 × 130 000 and you 2 000                   | 0.01554 %     | 7.00      | 0         | **≈ 307** | pool burns ≈ 15 365      |
| **D.** You are alone, Stake = 390 000 (T1 + T2 max) | 100 %         | 300       | 300       | **900**   | 90 144 - 600 = 89 544    |

‡ Burned counts the Tier 1 pool in A to C and both pools in D.

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

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

| Group (count)        | Stake T1 / server | Stake T2 / server | T1 payout / server | T2 payout / server\* | **Total / server†** |
| -------------------- | ----------------- | ----------------- | ------------------ | -------------------- | ------------------- |
| Full T1 (150)        | 60 000            | -                 | **106.05**         | 0                    | **≈ 406**           |
| Half T1 (150)        | 30 000            | -                 | **53.03**          | 0                    | **≈ 353**           |
| Full T1 + ½ T2 (150) | 60 000            | 60 000            | **106.05**         | **180.29**           | **≈ 586**           |
| Full T1 + T2 (50)    | 60 000            | 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** → the standby balance automatically fills Tier 1, then Tier 2, then Tier 3 (checked every 10 minutes).
* **MFP falls** → excess stake moves out of the tiers into the *standby balance*. **Unlocking the standby balance takes 30 days.** A hidden server has an MFP of 0, so its whole lock waits in standby until the server is listed again.
* **Server deleted** → its locked CLORE (tiers and standby together) waits under **Deleted server unlocks** on *My Servers*. Claim it there and it reaches your balance **30 days** after the claim.

***

### 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 10-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 (10/20/30 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/)


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation by asking a question.

Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:

```
GET https://docs.clore.ai/for-hosts/mfp-lock-a-complete-breakdown-of-mechanics.md?ask=<question>&goal=<user_goal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.