> For the complete documentation index, see [llms.txt](https://docs.electra.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.electra.exchange/electra-liquidity-provider-pool/withdrawal-system/understanding-epochs.md).

# Understanding Epochs

<figure><img src="/files/Flcz6TspnfSelx5Oq9TJ" alt=""><figcaption></figcaption></figure>

The withdrawal system operates using two types of time intervals:

### Normal Epochs

**Duration:**

* Each normal epoch typically lasts 3 days, but the duration can be adjusted depending on protocol requirements. However, the epoch duration cannot be shorter than 1 day.

**Calculation:**

* The current epoch is calculated using:&#x20;

  $$
  \text{Current Epoch} = \frac{\text{Current Timestamp} - \text{Start Time}}{\text{Epoch Duration}}
  $$
* Any fractional part is discarded, resulting in discrete epoch numbers.

**Usage:**

* Normal epochs manage daily withdrawal requests and short-term pool dynamics.

**Example:**

* If the protocol launched on January 1, 2025, at 00:00:00 UTC with a 3-day epoch duration, then:
  * **Epoch 0:** January 1, 2025 – January 3, 2025, 23:59:59
  * **Epoch 1:** January 4, 2025 – January 6, 2025, 23:59:59
  * **Epoch 2:** January 7, 2025 – January 9, 2025, 23:59:59

***

### Global Epoch

**Duration:**

* A global epoch lasts 7 days.

**Purpose:**

* At the end of each global epoch, the system aggregates trading results to update the fixed collateralization level.

**Collateralization Update:**

* The pool's asset value is compared against the previous baseline.
* If the pool’s value exceeds the baseline, a predefined percentage (e.g., 40%) of the profit is extracted to establish a new baseline.

**Example:**

* If the pool value increases from 10,000 USD to 11,000 USD during the global epoch:
  * **Profit:** 1,000 USD
  * **Profit extraction (40%):** 400 USD
  * **New fixed collateralization level:** 11,000 USD – 400 USD = 10,600 USD

**Impact on Profit Sharing:**

* Profits are distributed only if the pool’s value exceeds this baseline.
* If the pool does not meet or exceed the baseline, profits are not distributed, and losses are carried over to the subsequent epoch.