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The interest will go into those delegations at the same percentage of your non-delegated stake. So, if you have 4000 SP and you delegate 1000 SP to a friend, you'll get 80% of the interest applied to your non-delegated stake and 20% applied to what you have delegated.

You still own all of it, regardless. It doesn't go to the delegatee's account.

Ok cool, thanks so much, it all makes so much more sense now!!