# +5/-5% Question

Hello all i am trying to wrap my head around this new +5/-5% concept for example right now if i spawn a new neuron with the current market am i likely to lose -5% of my peas in 7 days ? Essentially are we all now gambling 5% of our rewards every single time we choose to spawn them?

I’ve been stockpiling my maturity for tax purposes and after some math should click spawn today i could potentially lose 21 peas should the market tank further in 7 days which is looking plausible, does anyone have a trick up their sleeve or is it just crystal ball theories & pure market luck from now on?

A final question, what exactly is the margin in correlation to the price that decides whether I’m getting +5 peas or being fleeced -5 peas?

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The IC dashboard Governance page has a chart titled Maturity Modulation (100 Maturity Converted to ICP) that shows how much ICP would result from converting 100 maturity to ICP. It shows the current and historical values.

The current value is 103.88 ICP, and since maturity modulation is calculated based on the ICP price over the previous 4 weeks, I don’t think it’s possible that the modulation can go negative within the next 7 days. That is, if you spawn a neuron today, I think you will have a positive maturity modulation in 7 days even if the ICP price drops over the next week. I haven’t yet studied the algorithm that calculates the modulation, so I could be wrong, but I’d be surprised if the modulation could drop from 3.88% to a negative percentage in one week.

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Ah i gotcha so if the maturity modulation drops to 98% then i would get clipped 2% on my spawn however as it stands at 103.88 its very likely i will get some extra peas minted, thanks man this helps alot

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this is how rewards are modulated. Hope it helps. They made it easy for mass adoption and help to reach the planned 90% ICP locked in neurons:

• Compute the relative 7-day return for each of the last four weeks. Thus,
• w1 = (a1 - a8) / a8,
• w2 = (a8 - a15) / a15,
• w3 = (a15 - a22) / a22,
• w4 = (a22 - a29) / a29.
• The values w1, w2, w3and w4 are bounded from -0.05 to 0.05 by clipping values to the limits of this range, i.e., capping by 0.05 and flooring by -0.05.
• Take the average w = (w1 + w2 + w3 + w4) / 4.
• The resulting value w is a number between -5% and 5% that determines modulation.
• The maturity amount x is converted to x * (1+w) units of ICP.
• The maturity modulation function is updated once a day.
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Thanks mate this is making much more sense now and I’m pleasantly surprised at how much better things are in retrospect to what I thought they were

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