> For the complete documentation index, see [llms.txt](https://docs.pstake.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pstake.finance/pstake-staking/pstake-staking-details/yield-calculation-methodology.md).

# Yield Calculation Methodology

Rewards are distributed on a seasonal basis, with users able to claim BTC rewards at the end of each season.

While staking, users generate pSATS, which are converted to SATS at a pre-set exchange rate defined for the season. The pSATS are tied to an equivalent value in the BTC derivative in SATS.

For transparency, rewards for each season are sent to a distribution address before each season begins.

Remember, the allocation for rewards is as follows:

* 80% of pSATS will be allocated to all users staking PSTAKE
* 20% of pSATS will be allocated to users staking PSTAKE and holding at least 0.05 YBTC.

All rewards are distributed proportionally based on the amount of PSTAKE you have staked.

At the end of each season, users can convert their accumulated pSATS to BTC derivatives at the pre-set exchange rate defined for the season. Users must claim rewards within the time window following the season's end.

pSATS will not carry over into a new season!


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