🥂Referrals

Commission

In order to provide users with a trading experience similar to that of CEXs, SubstanceX has designed a user referral mechanism to provide users with a better trading experience similar to that of CEXs. This mechanism allows users to earn additional income by inviting other users. The earnings come from the trading fees of the users and are periodically distributed as commissions to other users. Additionally, the referral mechanism also establishes different levels to achieve various trading fee rebates.

• Commission earnings are calculated after applying the trading fee discounts provided by VIP levels (i.e., calculated from the actual collected trading fees).

Case Study:

Users A, B, and C. A is a level 0 user, and B and C are users who used A's referral code.

The referral structure and the generated trading fees are as shown in the following diagram:

Level 0	A = 0 USD	/
Level 1	B = 50 USD	C = 25 USD

If:

• Referrer's commission = 5% (the reward earned by user A)

• Referee's commission = 10% (the reward earned by users B and C after using the referral code)

In this case, the commission earnings for A, B, and C would be as follows:

User A：(50+25)*5% = 3.25 USDX

User B：50*10%= 5 USDX

User C：25*10% = 2.5 USDX

User	Commission revenue
A	(50+25)*5% = 3.25 USDX
B	50*10%= 5 USDX
C	25*10% = 2.5 USDX

Inviters

1. Commission Level

The commission level design is as follows:

Rank	active friends Referred	Total Commission Rate
0	0	10%
1	≧ 3	20%
2	≧ 10	30%
3	≧ 20	40%

2. Upgrade and Downgrade Mechanism

The following "week" refers to a natural week.

Upgrade Mechanism:

• Automatic upgrade. Updated once a day. Within one natural week, as long as the number of active friends among the invitee users reaches the next level, you can upgrade. Skipping levels is possible, but upgrades will only be processed once a day.

• If the inviter's referral rank upgrades, the owned referral codes will also upgrade. The additional commission earnings will all be added to the inviter's share.

• Case Study:

  	User A（Inviter）	User B（Invitee）
  (User A) VIP 0	5%	5%
  (User B) VIP 1	15%	5%

Downgrade Mechanism:

• Automatic downgrade. Updated every week at 00:00 (UTC+0). If for four consecutive weeks, the inviter's number of active friends does not meet the requirements of the current level, the inviter will be downgraded.

• Downgrade level by level. Downgrades will occur one level at a time. After each downgrade, a new 4-week assessment period begins.

• If the inviter's commission level decreases, the owned referral codes will also be downgraded. The lost commission earnings will be deducted first from the earnings of the invitee users.

• Case Study:

  	User A（Inviter）	User B（Invitee）
  (User A) Vip 1	20%	10%
  (User A) VIP 0	10%	0
  (User A) VIP 3	10%	0

3. Active Friends

What are active friends?

Criteria: Weekly Perpetual Trading Volume > 10,000 USD

• Trading Volume = Prize * Size

• Both opening and closing trades are considered in the trading volume.

• Updated daily at 00:00 (UTC+0).

Calculation of Active Friends

For inviter A, if they have an invitee user who meets the criteria of an active friend, inviter A will count as having one active friend.

4. Referral Codes

• Each inviter has 20 referral codes.

• Inviters can customize different commission percentage allocations for each referral code. Additionally, inviters can add a "note" to each referral code.

  Case Study:

  	Inviter	Invitee
  Referral Code a	5%	25%
  Referral Code b	15%	15%
• Inviters can only set commission percentage allocations before the referral code is used.

Invitees

A user can only be bound to one referral code.Once verification is completed, it can not be changed.

Rewards

• Distribution Time

Updated daily at 00:00 (UTC+0).

• Reward Tokens

Distributed in the form of USDX.

• Claiming Method

Users can claim their rebate on the Referral page.

Claiming rebate requires paying a gas fee.

Unclaimed rebate accumulates until the user's next claim.

Earnings will be claimed to the user's exchange wallet.

(* Referrals system currently only running on SubstanceX on Arbitrum.)