# FIL Staking QnA

<mark style="color:blue;">**What is FIT?**</mark>

FIT (Filecoin Trust) token serves as **proof of equity for user FIL deposits**. When users deposit FIL, the smart contract mints FIT based on the real-time exchange rate. FIT acts as proof of deposit, which is used for **profit distribution and FIL redemption**.

<mark style="color:blue;">**2. When does yield start generating after depositing?**</mark>

Yield starts accumulating **as soon as you deposit FIL**, as the FIT exchange rate increases over time. However, since the exchange rate changes only when borrowers voluntarily repay, and repayments occur irregularly, **long-term deposits are recommended for maximizing returns**.

<mark style="color:blue;">**3. Why did my FIT value decrease when the utilization rate exceeded 90%?**</mark>

To **prevent liquidity exhaustion**, a **90% liquidity protection mechanism** is in place.

* **When the utilization rate exceeds 90%**, the FIT exchange rate decreases as utilization increases.
* **Users redeeming FIL during this period may experience a rate loss.**
* **Users depositing FIL during this period receive a rate subsidy.**
* **Once liquidity is restored, the FIT exchange rate returns to normal.**

**A temporary FIT rate drop due to high utilization is normal, and it will recover once liquidity stabilizes.**

<mark style="color:blue;">**4. Why is there a fee for redeeming FIL?**</mark>

* **The protocol does not take profits from interest rates; all interest paid by borrowers goes to pledge users.**
* **Instead, a certain fee is charged as protocol revenue, and part of this is used to repurchase the FIG governance token.**

<mark style="color:blue;">**5. Why is there a significant difference between my earnings and the displayed APY?**</mark>

* APY is based on the **comprehensive interest rate in the lending market**.
* However, **since Storage Provider (SP) repayments are not real-time, interest is only settled when they repay**.
* **FIT exchange rate increases upon repayment, generating returns for depositors.**
* **Keeping deposits for a longer duration will help earnings align with the displayed APY.**

<mark style="color:blue;">**6. Why does slippage occur when depositing or redeeming FIL?**</mark>

* When users deposit or redeem FIL, the smart contract calculates results **based on the latest exchange rate**.
* However, due to market fluctuations, **the exchange rate between FIL and FIT may change before the transaction is confirmed**.
* Slippage occurs **when multiple transactions are being processed simultaneously on the blockchain**.
* **Slippage does not reduce the actual value of the user's assets.**

<mark style="color:blue;">**7. Why do transactions fail or experience data loading delays?**</mark>

* The issue may be related to the **RPC node** you are using.
* Try switching to a faster node via [Chainlist.org](http://chainlist.org/).
* If issues persist, contact **community support for assistance**.

<mark style="color:blue;">**8. Why do transactions take so long to confirm?**</mark>

* The **Filecoin network has a block time of 30 seconds**, meaning transactions take at least that long to process.
* **Network congestion can further delay transaction confirmations.**
* **To speed up transactions, users can increase gas fees or wait for confirmation.**


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