Federated Miners
Role: External investors who lock capital through registered principal miners without operating Bittensor infrastructure.
Also known as: External Liquidity Providers, Pool Participants, Delegators
Overview
Federated Miners enable anyone with USDC and an EVM wallet to participate in Cartha subnet's liquidity provision without the technical complexity of running Bittensor infrastructure. You lock capital through a registered principal miner's hotkey, maintain full ownership of your position, and can withdraw after your lock period expires.
Your locked USDC provides liquidity for 0xMarkets, a decentralized perpetual futures exchange built by the same team behind Cartha. In return, you earn a share of trading fees and ALPHA emissions from the Bittensor subnet.
General Tensor — The Recommended Starting Point
The 0xMarkets team operates General Tensor, an in-house principal miner available to all federated miners. If you're new to Cartha or don't have a specific principal miner in mind, General Tensor offers:
Automated distribution — Rewards are calculated and claimable epoch-by-epoch on the Principal Miners dashboard
Transparent commission — Rate is publicly displayed on the dashboard
Team-operated — Run by the same team that built the subnet and the exchange
No off-chain agreements needed — Everything is handled through the dashboard
You can lock to General Tensor or any other registered principal miner. See Choosing a Principal Miner for guidance.
Key Benefits
No Bittensor Setup Required — Just an EVM wallet and USDC on Base
Non-Custodial — Your USDC is locked in a smart contract; the principal miner cannot access or withdraw it
Direct Withdrawals — No principal miner approval needed to withdraw after lock expiry
Choose Your Manager — Lock to General Tensor or any registered principal miner
Flexible Lock Periods — 7 to 365 days
No CLI Required — Everything is done through the web interface
Key Considerations
Emissions Go to Principal Miner First — ALPHA emissions are initially received by the principal miner's Bittensor wallet, then distributed to you (this is the core trust assumption — use a trusted operator like General Tensor to reduce this risk)
Your Funds Stay Yours — The principal miner cannot access your committed USDC; only you can withdraw it after lock expiry
LP Risk Applies — Your USDC provides liquidity for the 0xMarkets DEX; liquidation losses from volatile markets may reduce your capital
Rewards Are Not Guaranteed — Emissions depend on subnet performance, trading volume, and your deposit score
How It Works
System Architecture
Smart Contract Protection
Your position is secured on-chain:
What You Control:
Position ownership (via your EVM wallet)
Capital withdrawal after lock expiry
No principal miner approval needed to withdraw
Independent locking (no CLI or miner coordination required)
What You Don't Control:
ALPHA emissions (sent to principal miner's Bittensor wallet)
Pool performance (managed by principal miner)
Liquidation events (market-driven from DEX activity)
Becoming a Federated Miner
To start as a federated miner you need:
An EVM wallet (MetaMask or similar) connected to Base Mainnet
Base ETH for gas fees
Base USDC for your deposit
A principal miner's hotkey (SS58 address) to lock through
📘 Step-by-step instructions: See the Federated Miner Guide for a complete walkthrough on setting up your wallet, locking funds, using the Principal Miner dashboard, and claiming ALPHA rewards — no CLI required.
Choosing a Principal Miner
General Tensor (In-House Option)
The simplest way to start is by locking to General Tensor, the principal miner operated by the 0xMarkets team:
Operator
0xMarkets team (builders of Cartha subnet and 0xMarkets exchange)
Commission
3% of ALPHA emissions
Distribution
Automated — rewards are calculated per epoch and claimable directly from the dashboard
Dashboard
cartha.finance/principal-miners — view performance, earnings, and claim rewards
To lock to General Tensor, copy the hotkey from the Principal Miners page and use it when locking via "Become an LP".
Evaluating Other Principal Miners
If you prefer a different operator, evaluate them on:
Track record and reputation — Past performance and distribution history
Commission rate — The percentage they take from your rewards
Distribution method — Automated (Cartha Rewards System) vs. manual
Communication — Active channels (Discord, Telegram, email) and responsiveness
Pool strategy — Which markets they operate in and why
Where to Find Principal Miners
Principal Miners Page: cartha.finance/principal-miners — browse all approved principal miners, compare commission rates, view locked capital, and see performance stats
General Tensor: Featured on the principal miners page — the team-operated default
Leaderboard: cartha.finance/leaderboard — view top-performing miners
Community: Discord and Telegram groups
Direct Outreach: Post your capital amount and preferred lock duration in community channels
Red Flags
Avoid principal miners who:
Promise guaranteed returns
Request capital outside of Cartha vaults
Refuse to disclose their commission rate or terms
Don't use the automated distribution system without clear justification
Have no track record or references
Green Flags
Look for principal miners who:
Use the automated Cartha Rewards System for transparent distribution
Provide transparent performance reporting
Have satisfied federated miners as references
Disclose all risks and commission upfront
Maintain consistent distribution history
Understanding the Terms
If You're Using General Tensor
If you lock to the in-house General Tensor principal miner, the terms are straightforward:
Commission rate is 3% of your ALPHA emissions per epoch
Distribution is automated — rewards accumulate per epoch and you claim them directly from the dashboard
No separate agreement needed — everything is handled through the Cartha Rewards System
You still need a Bittensor coldkey (SS58 address) to claim your ALPHA rewards
If You're Using Another Principal Miner
Since ALPHA emissions go to the principal miner's wallet first, you need a clear arrangement for profit sharing. Cartha does not enforce these agreements on-chain — they are between you and the principal miner.
What to clarify before locking:
Commission Rate
What percentage does the principal miner take from your rewards?
Distribution Method
Automated (Cartha Rewards System) or manual? If manual, how often?
Lock Terms
Preferred pool, lock duration, any minimum amounts
Communication
How will you reach them? What reporting will they provide?
Tip: Prefer principal miners who use the automated Cartha Rewards System. This significantly reduces distribution risk because rewards are calculated transparently and you claim directly — no manual transfers required.
Managing Your Position
Once locked, you can manage your position through the Cartha web interface:
View Positions — See all your active locks, amounts, and expiry dates
Top Up — Add more USDC to an existing position (no principal miner approval needed)
Extend Lock — Increase lock duration for a higher subnet score and better emissions
Withdraw — Claim your principal after lock expiry (minus any liquidation losses)
📘 Detailed instructions: See the Federated Miner Guide for step-by-step position management with screenshots.
Risks & Protections
What You're Protected From
Principal Theft
Your USDC is in a smart contract, not the principal miner's wallet
Forced Lock Extension
Principal miner cannot extend your lock
Arbitrary Terms Changes
On-chain lock terms are immutable
What You're NOT Protected From
Distribution Risk
If you use a principal miner that doesn't use the automated rewards system, they could fail to distribute your share. Mitigation: Use General Tensor or a principal miner on the Cartha Rewards System.
Liquidation Losses
Your USDC provides DEX liquidity. LP positions can be liquidated in volatile markets; capital loss is permanent and not reimbursed.
Poor Performance
Low trading volume or a bad subnet score reduces ALPHA emissions. Returns are not guaranteed.
Smart Contract Risk
Vault contracts are audited but not risk-free. Bugs or exploits could result in loss of locked funds.
Network Risk
Bittensor network issues or Base chain downtime could delay emissions or transactions.
Risk Mitigation
Use a Trusted Operator — Lock to General Tensor or a principal miner using the automated Cartha Rewards System to minimize distribution risk
Start Small — Lock a smaller amount first; scale up after verifying payouts work
Diversify — Spread across multiple pools and potentially multiple principal miners
Monitor Regularly — Track your position and rewards on the Principal Miners dashboard
Understand LP Risk — Your capital provides real liquidity on a DEX; liquidation events can and do happen
Economics & Returns
How Miners Earn
Miners on Cartha earn from two sources:
Trading Fees (50% to LPs)
Proportional to your locked USDC; based on pool trading volume; paid in USDC (stays in vault)
ALPHA Emissions (31% to miners)
The subnet emits 7,200 ALPHA per day. Miners collectively receive 31% of that (~2,232 ALPHA/day). Your share is based on your deposit score (time × amount × pool weight) relative to all other miners.
How Your Share Is Calculated
Your deposit score determines what fraction of the daily miner emissions you receive:
Deposit score = lock duration × locked amount × pool weight
Your share = your deposit score ÷ total deposit score of all miners
Emissions are distributed each epoch (weekly cycle: Friday 00:00 UTC → Thursday 23:59 UTC)
Since you're a federated miner, ALPHA emissions go to the principal miner's Bittensor wallet. You receive your share per your profit-sharing agreement with them.
📘 Learn more: See Fees & Rewards and Weekly Epochs for full details on how emissions and fee distribution work.
Frequently Asked Questions
Can the principal miner steal my USDC? No. Your USDC is locked in a Cartha vault smart contract, not the principal miner's wallet. The principal miner cannot access, move, or withdraw your committed funds. Only you can withdraw via your EVM wallet after lock expiry.
What if the principal miner doesn't pay me? If you use a principal miner on the Cartha Rewards System (like General Tensor), rewards are calculated automatically and you claim them directly from the dashboard — no manual payment required. For principal miners not on the rewards system, you rely on their agreement and reputation. This is why choosing a trusted operator matters.
What is General Tensor? General Tensor is the in-house principal miner operated by the 0xMarkets team. It uses automated epoch-by-epoch distribution, has a publicly disclosed commission rate, and is the recommended starting point for new federated miners. View it at cartha.finance/principal-miners.
What happens if the pool gets liquidated? Your capital is reduced by the liquidation loss. This is permanent and not reimbursed. LP risk is inherent to the system — your USDC provides real liquidity on the 0xMarkets DEX.
Can I withdraw before my lock expires? No. Lock duration is enforced by smart contracts and cannot be shortened. Plan your lock period carefully.
Can I lock to multiple principal miners? Yes. You can create positions with different principal miners across different pools and lock durations using separate EVM wallets.
Is there a minimum lock amount? Yes, 100,000 USDC is the minimum lock amount for principal miners. Check with your specific principal miner for their minimum requirements for federated miners.
What if the principal miner stops operating? Your USDC is still safe in the vault. You can withdraw after your lock expires. However, ALPHA emissions will stop if the miner de-registers from the subnet.
How does General Tensor's commission work? General Tensor takes a 3% commission from your gross ALPHA rewards each epoch. The remaining 97% is yours to claim. Commission is deducted automatically — you always see your net claimable amount on the dashboard.
Getting Started
📘 Ready to become a federated miner? Follow the Federated Miner Guide for complete step-by-step instructions on wallet setup, locking funds, and claiming rewards.
Resources
Principal Miners Guide — Understanding your manager
Federated Miner Guide — Full setup, locking, and claiming walkthrough
Interface Guide — How to use the Cartha interface
Weekly Epochs — How epoch timing and rewards work
FAQ — Common questions
Risk Disclosure — Full risk information
Support
Discord: https://discord.gg/zGkW2kTsGM
Website: https://cartha.finance
Email: [email protected]
Disclaimer: Federated mining involves significant risks including potential capital loss from liquidations, smart contract vulnerabilities, network failures, and reliance on principal miner distribution. General Tensor is operated by the 0xMarkets team with automated distribution, but the same LP and smart contract risks apply. Cartha provides infrastructure only and does not guarantee returns. Rewards depend on subnet performance and trading volume. Always do your own research and consult appropriate advisors before committing funds.
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