# stBGT-Incentivized Debt

## Passive BGT rewards

Addresses with active loan or loop positions will be eligible to earn passive BGT rewards. The only eligibility criteria is that the position must be opened - or an existing position extended - after block `5623025` 

Rewards will be awarded to users as stBGT via [Merkl](https://merkl.xyz/).

## Reward Calculation and Distribution

Snapshots will be taken at regular intervals of user positions, and the following methodology applied to calculate the weight of each eligible user's rewards:

```
timeToExpiry = if(endDate > block.timestamp) {endDate - block.timestamp} else {0}

weight = borrowed * sqrt(timeToExpiry)
```

<figure><img src="/files/SJSz94ZUb7yCELaSpnX0" alt=""><figcaption></figcaption></figure>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://documentation.bakerdao.io/stbgt-incentivized-debt.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.