# Buffer Pool Mechanism

<figure><img src="https://2818732251-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FniaC1zjJFz2QDJGHFkFf%2Fuploads%2F5DYQewAAvKzjP9Sv9SX9%2Fimage%20(11).png?alt=media&#x26;token=93c44cba-46cc-40a7-b9d4-5a2000875f9c" alt=""><figcaption></figcaption></figure>

How Splashing Staking manages SEI deposits and withdrawals:

* **Deposit Flow**: When a user sends SEI, the protocol’s dynamic distributor automatically allocates part of the funds to the buffer pool (for instant liquidity) and the rest to native staking (to earn rewards).
* **Instant Unstake**: Users can request instant withdrawals from the buffer. The fee for instant unstaking is calculated based on the current buffer liquidity tier:
* **Lower buffer liquidity = higher fee**
* **Higher buffer liquidity = lower fee**

This tiered fee structure incentivizes users to keep the buffer well-funded.

**Key Point:**

The instant unstake fee is dynamic and depends on the buffer’s current liquidity tier. The less liquidity in the buffer, the higher the fee—encouraging users to maintain a healthy buffer for everyone’s benefit.![](https://2818732251-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FniaC1zjJFz2QDJGHFkFf%2Fuploads%2F6iX2U798YoiQrGekKiJ9%2Fimage%20\(11\).png?alt=media\&token=eb829064-f591-4670-9043-ecef28051071)
