# Nursery

**1.“Once $sKITTYs are emitted, does the Nursery stop printing $KITTY until we are above peg again?”**

Staking $CAT's will give you $KITTY'S rewards when the price of $KITTY is above the peg (1 $KITTY : 1 $MATIC), but not when it is under the peg. 

**2."What happens if I interact with the Nursery in any way?"**

Any interaction with the Nursery will reset both timers. That's 3 epochs (18 hours) to withdraw your $KITTY rewards, and 6 epochs to unstake your $CAT (36 hours).

**3. “Are the Nursery rewards pro-rated by time? I.e. if I stake three hours before the end of an epoch vs five hours before the end of an epoch, do I get different rewards?”**

No, it's determined by how much you have staked at the time of printing (i.e. end of one epoch and start of the other). It doesn't matter if you stake 3 hours before or 30 seconds before the emissions occur.

**4. "If I remove my $CAT from Nursery without first collecting my $KITTY, will it be lost forever?"**

No, it will still be there to collect whenever you need.

**5. "The Nursery APR dropped because we're in a 'debt phase'. What does this mean?"**

A debt phase takes place on the expansion epochs that start after a contraction period where there are still $sKITTY to be redeemed.

65% of expansion during debt phase is allocated to the treasury fund to prepare for the $sKITTY redemption. This amount is still reserved  whether or not $sKITTY holders are redeeming bonds or not.

Once $KITTY in treasury is sufficiently full to meet all circulating bond redemption, expansion rates will resume to normal.

**6. "If we're in a debt phase, how long will it last until the Nursery continues printing as normal?"**

The debt phase will last as long as is necessary to adequately pay back outstanding $sKITTY debt. Please keep in mind that the DAO will also need to collect a little extra, as there needs to be a cushion to cover the bonuses when people redeem $sKITTY over peg.\
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There's no exact way of calculating how many epochs it takes, since we don't know exactly when people will redeem their $sKITTY. If the debt phase is ended too early, and then the treasury doesn't have enough $KITTY to repay the $sKITTY bonus, then the APR restriction would need to be turned back on.

**7. "At the end of the epoch, the Nursery did not print $KITTY, and then no $sKITTY(s) were issued in the NAP. Why?"**

There is a balanced state "at peg" when $KITTY's TWAP is between 1.00 and 1.01, and this means there is neither contraction nor inflation.

**8. "If $KITTY continues climbing above the price of the peg, will that influence how long the debt epoch lasts?"**

Depending on the price of $KITTY, the Boardroom print will have to adjust to provide a buffer for any unclaimed $sKITTY. As the price of $KITTY climbs above the peg, more $KITTY needs to be distributed to the treasury to account for $sKITTY bonus redemption.