> For the complete documentation index, see [llms.txt](https://docs.zeta.markets/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.zeta.markets/~/changes/R54eqdjuKLVOBkiYmsfG/rewards-programs/trading-rewards-program.md).

# Trading Rewards Program

Zeta’s trading rewards program aims to incentivize trading on the protocol to stimulate platform growth. The rewards are distributed in the form of $ZEX token. They are distributed to the traders based on their total epoch Z-Scores at the end of each epoch.

### Z-Score

Z-Score is the scoring system used to determine trading rewards allocation on Zeta. Users can earn Z-Score by trading on Zeta. Z-Scores are updated in real-time as trades take place.

The Z-Score earned from a trade is calculated as follows:

$$
zscore = (\sum\_{a}m\_a)\times f \times 1000
$$

where

$$
f=makerFeesPaid+takerFeesPaid-takerVolume \times maxMakerRebate
$$

`f` represents the trading fees paid, `m` refers to any active boosts or multipliers such as a referral bonus, and `a` refers to the active boosts. Note that all boosts and multipliers are applied to the fees paid, making them additive.

### Epoch Schedules

Rewards are distributed to traders based on their total Z-Scores earned in epochs. Each epoch (except the Genesis Epoch) lasts 28 days. 

The $ZEX rewards pool for each epoch will be announced before the epoch begins.

| Epoch   | Starting Date | Remark                   |
| ------- | ------------- | ------------------------ |
| Genesis | 07 June 2024  | Ends 28 days after TGE   |
| 1       | TBD           | Starts 28 days after TGE |
| …       | …             |                          |

The Genesis Epoch is the first epoch. It is a longer epoch which begins at the snapshot on 7 Jun 2024 and ends 28 days after TGE date. As the very first epoch, a total of **8,000,000 $ZEX** has been allocated as the reward.

### Reward Distribution Formula

In each epoch, traders’ rewards will be calculated as follows:

$$
r=R \times \dfrac{zscore}{\sum\_{n}zscore\_n}
$$

where `R` is the total rewards pool allocated for the epoch in $ZEX, and `r` refers to the rewards allocated to a specific trader.

Traders will not be able to see their rewards before an epoch concludes. As rewards are in the form of $ZEX tokens, traders will be able to claim them in full, once it is available for claiming.

Rewards are calculated once the epoch ends. After which, a small window of time (1-2 days) may be required to finalize the rewards, before it becomes available for claiming.