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

# Overview

## **FRAG-22 : Reward Module**

The Reward module functions as the central mechanism for reward tracking, calculation, and distribution within the FRAG-22 ecosystem. It continuously tracks users’ contributions based on their holdings of receipt tokens, systematically manages reward settlements, and handles the precise distribution of rewards to both individual users and external DeFi protocols. By ensuring accurate and transparent reward management, the Reward module incentivizes user participation and enhances overall system efficiency.

```mermaid theme={null}
graph TD

%% User interactions
User[User] -- Update Receipt Token Holdings --> ContributionTracking
User -- Claim Reward Request --> RewardClaimProcess

subgraph Reward Module

%% Contribution Tracking Flow (Blue Arrows)
ContributionTracking -->|Update| UserRewardAccount
ContributionTracking -->|Update| FundRewardAccount

%% Reward Settlement Flow (Green Arrows)
FundRewardAccount -->|Periodic Settlement| RewardSettlement
RewardSettlement -->|Allocate Rewards| UserRewardAccount
RewardSettlement -->|Allocate Rewards to Wrapped Token| WrappedTokenHolderRewardAccount

%% Reward Claim Flow (Purple Arrows)
UserRewardAccount -->|User Initiates Claim| RewardClaimProcess
WrappedTokenHolderRewardAccount -->|DeFi Protocol Initiates Claim| RewardClaimProcess

%% Reward Distribution (Actual Reward Token Transfers)
RewardClaimProcess -->|Transfer Reward Tokens| RewardTokenReserveAccount

end

%% External Entities
RewardTokenReserveAccount -->|Transfer Rewards| User
RewardTokenReserveAccount -->|Transfer Rewards| ExternalDeFiProtocol

%% Styling the arrows with distinct colors
linkStyle 0 stroke:#00AEEF,stroke-width:2px,color:#00AEEF
linkStyle 1 stroke:#00AEEF,stroke-width:2px,color:#00AEEF
linkStyle 2 stroke:#34A853,stroke-width:2px,color:#34A853
linkStyle 3 stroke:#34A853,stroke-width:2px,color:#34A853
linkStyle 4 stroke:#34A853,stroke-width:2px,color:#34A853
linkStyle 5 stroke:#7B68EE,stroke-width:2px,color:#7B68EE
linkStyle 6 stroke:#7B68EE,stroke-width:2px,color:#7B68EE
linkStyle 7 stroke:#FF8C00,stroke-width:2px,color:#FF8C00
linkStyle 8 stroke:#FF8C00,stroke-width:2px,color:#FF8C00
linkStyle 9 stroke:#FF8C00,stroke-width:2px,color:#FF8C00

classDef user fill:#0078D4,color:#ffffff
classDef internal fill:#34A853,color:#ffffff
classDef external fill:#FFA500,color:#ffffff

class User,ExternalDeFiProtocol user
class ContributionTracking,UserRewardAccount,FundRewardAccount,RewardSettlement,WrappedTokenHolderRewardAccount,RewardClaimProcess,RewardTokenReserveAccount internal
```

### **Core Responsibilities:**

* **Contribution Tracking**: Dynamically tracks users’ and the fund’s contributions, based on changes in receipt token holdings.
* **Reward Settlement**: Periodically settles and allocates reward amounts to users’ reward accounts based on accurate contribution calculations.
* **Wrapped Token Reward Distribution**: Manages and allocates rewards intended specifically for wrapped token holders (DeFi protocols), which then distribute these rewards internally.
* **Transparent Reward Accounting**: Maintains detailed records for every reward calculation, settlement, and distribution event, ensuring complete transparency and auditability.