> For the complete documentation index, see [llms.txt](https://illuminance.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://illuminance.gitbook.io/docs/illuminance-business-model/business-model-overview/profit-generation-vs-distribution.md).

# Profit Generation vs Distribution

After the system generates trading profit, it is distributed among participants according to their level of involvement in the ecosystem.

Participants earn through:

* allocating capital to the system
* participating in investment strategies
* optionally developing a network and team

**Income is not generated within the structure, but comes from external market activity.**

This is a critical distinction.

Illuminance is not a system where funds from some participants are used to pay others.\
The model is based on a simple sequence:

* profit is generated in the market
* then it is distributed

This separates the system from models that rely on internal fund redistribution without an external source of value.

***

The model ensures that all distributed value is backed by real market activity rather than internal capital flows.


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