# Bonus share

Bonus Share determines how much of the [Bonus Pool](https://torch-1.gitbook.io/litepaper/system-mechanics/bonus-pool) each winning bet receives, based on stake size and timing:

$$
\text{BonusShare}\_i = \frac{w\_i}{\sum\_j w\_j}
\quad \text{where} \quad
w\_i = s\_i \cdot e^{-\lambda (T - t\_i)}
$$

Where:

* `sᵢ` is stake of winning bet
* `tᵢ` is time the bet was placed
* `T` is current time (when payout is triggered)
* `wⱼ` is time-decayed weight of bet
* `λ` is the decay rate, with initial constant set to 1/48 for a 2-day half-life

The mechanism distributes reserve rewards to winning traders in a continuous, stake-weighted, and sustainable manner. It also ensuring the reserve remains above a safe target level.