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

# Payouts

> How payouts settle on-chain, and how to verify every one.

Every Hyro Protocol payout settles on-chain in USDC, with a TXID anyone can verify on Solana explorer.

## Challenge Vault payouts

<Steps>
  <Step title="Request via Phantom">
    Submit the payout request from your wallet.
  </Step>

  <Step title="On-chain eligibility check">
    The contract verifies eligibility against your tier and rules.
  </Step>

  <Step title="Approval">
    v1: manual approval queue. Later: auto-approval with a \~24h safety window and kill switch.
  </Step>

  <Step title="USDC transferred">
    Funds move from the payout vault to your wallet. Split applied (80% Tier 1, 50% Tier 2 incremental).
  </Step>
</Steps>

## Verifying a payout

Every payout produces a transaction hash on Solana. You can independently verify:

* **Challenge purchases** — fee → fee vault TX hash
* **Funded-demo payouts** — payout vault → your wallet TX hash
* **Vault performance-fee crystallizations** — with HWM reference
* **Vault opening / closing events**

[What's verifiable on-chain →](/resources/decentralization)

## Crystallization (vaults)

For the real-capital vault, performance fees crystallize only at **realized events**:

* LP withdrawal
* Monthly snapshot

Fees never crystallize on paper gains. Once crystallized, the trader, protocol, and insurance shares can be claimed.

## The treasury path

USDC moves through two on-chain pools, controlled by a **Squads 3/5 multisig** — no single key controls movement:

```
Trader pays fee (Phantom -> USDC)
        |
   Fee vault (Solana PDA)
        |
  Multisig transfer (Squads 3/5)
        |
  Payout vault (Solana PDA)
        |
  Trader payout (USDC -> Phantom)
```

<Card title="Proof of reserves" icon="shield-check" href="/resources/audit" horizontal>
  The payout vault balance is queryable on-chain at any time.
</Card>