# Referral Program

The more referrals you have, the more CHRMAs you get!

## Objective of the Referral Program

The Chromatic Protocol introduces a Referral Program aimed at activating the protocol and expanding the ecosystem by acquiring key participants, the traders. The program operates by rewarding referrers based on their performance in acquiring traders. Moreover, the program is designed to provide rewards not only to referrers but also to traders (hereafter referred to as referrals) who join through the Referral Program.

## Basic Principles of the Referral Program Design

Referrer's rebate based on his/her referrals' trading rewards: Referrer receives a rebate proportional to the trading rewards accrued by the referrals they have gathered.

Referrals' reward boosting based on referrer's tier: Referrals receive reward boosts based on the tier of their referrer.

Example:

Bob is a referrer, Alice is a referral. Alice uses Bob's referral link.

Alice receives a daily trading reward of 100 CHRMA.

Bob's rebate rate is 7% and the boosting rate is 10%

Alice will receive a total of 110 CHRMA (= 100 * 0.1) as a reward, and Bob will receive 7.7 CHRMA (= 110 * 0.07) as a rebate.

Dependency on Trade Reward Program: Due to the principles above, the Referral Program is part of the Trade Reward Program.

Referrer Assignment Unchangeable: Once a referral chooses a referrer, changing the designated referrer is not possible. This policy is intended to concentrate efforts on attracting new referrals rather than competing for already secured ones.

## Referrer Tier System

Referrer tier system is implemented to incentivize referrers to engage actively in the program. The referrer's tier is determined based on their performance, and the referrer's rebate rate and boosting rate are different based on the tier.

There are two separate tier systems, Normal Tiers and Special Tiers. Each tier systems has 3 different tiers, totaling 6 tiers in Chromatic Protocol's Referral Program.

#### Normal Tier

The Normal Tier is the tier for non-whitelisted referrers.

#### Special Tier

The Special Tier allows participants to earn higher rewards, with potential earnings of up to 13% for themselves and up to 15% for their referrals.

Access to the Special Tier is limited to a whitelisted few. However, to celebrate our mainnet launch and to reward early supporters, we're offering Special Tier to early bird participants.

Early Bird application period ended: from 27th Dec to 24th Jan

### Tier Calculation

The performance aggregation for tier calculation is executed daily at UTC 00:00. Regardless of the referrer's registration time, the entire day's trading fees of the referral are aggregated. Specifically, the basic data for the tier, such as the average daily number of referrals traded and the average daily trading fee amount, are calculated using the following formula. The data is smoothed using an exponential moving average to prevent fluctuations in daily aggregation.

The formula is as follows:

Where

$n_{i,t}$ : Referrer $i$’s daily average traded referrals count

$n_{i, t-1}$ : Referrer $i$’s daily average traded referrals count up to yesterday

$n_{i, this}$ : The number of Referrer$i$’s referrals traded today

$s_{i, t}$ : The average daily trading fee sum of referrer $i$

$s_{i, t-1}$ : The average daily trading fee sum of referrer$i$ up to yesterday

$s_{i, this}$ : The sum of the trading fees of the referrals of referrer $i$ today

**Eligibility by Tiers**

**Eligibility by Tiers**

Tier 1

$n_{i,t} ≧ 0 \ and \ s_{i,t} ≧ 0$

Transactions with 0 or more referrals, with referrals' trading fees totaling $0 or more.

Tier 2

$n_{i,t} ≧ 3.0 \ and \ s_{i,t} ≧ 400.0$

Transactions with 3 or more referrals, with referrals totaling $400 or more in trading fees.

Tier 3

$n_{i,t} ≧ 6.0 \ and \ s_{i,t} ≧ 800.0$

Transactions with 6 or more referrals, with referrals totaling $800 or more in trading fees.

### Boosting and Rebate Rates by Tiers

#### Normal Tiers

Tier | Referral Boosting Rate | Referrer Rebate Rate |
---|---|---|

Tier 1 | 5% | 3% |

Tier 2 | 7% | 5% |

Tier3 | 9% | 7% |

#### Special Tiers

Tier | Referral Boosting Rate | Referrer Rebate Rate |
---|---|---|

Tier 1 | 11% | 9% |

Tier 2 | 13% | 11% |

Tier3 | 15% | 13% |

## Referrer Rebate Distribution

The equation for distributing the referrer's rebate is as follows:

Where

$r_i$ : The amount of rewards that referrer $i$ is set to receive

$R$ : The aggregate quantity of allocated trading rewards

$n$ : The total number of traders

$m$ : The total number of referrals of referrer $i$

$f_i$ : The aggregate trading fee remitted by trader $i$

trading fees are aggregated at the USD conversion price at the time of payment

$x_i$ : The boosting rate of trader $i$'s referrer

traders who join through referrers will receive an additional reward of $x_i$%

$y_i$ : The rebate rate of trader $i$'s referrer

referrer who has recruited traders will receive a rebate of $y_i$% of the rewards received by the trader

$M$ : The lower threshold of the reward unit price

In some cases, the total amount of fees paid by a trader may be very small in a given period. In this case, a large number of rewards can be earned by paying a very small trading fee, which negatively affects the token price and disadvantages existing rewards or token holders. To prevent this from happening, we set a lower limit for rewards. (Currently set at 0.05)

### Example Scenario

Suppose the total daily trading rewards allocated is 5,000 CHRMA. During this period, two traders, Alice and Bob, have paid trading fees. Alice paid $25 in fees, while Bob paid $100. Bob participated through referrer Carol and received an additional 7% boost, while Carol received a 5% rebate.

In this case, the calculation for Carol's rebate would be as follows:

It's important to note that in the example from the Trade Reward Program, Carol's referral, Bob received 1947.58 CHRMA as a reward, and Carol received a rebate corresponding to 5% of Bob's reward.

## Referrer Rebate Vesting

The vesting stipulations for the rebate rewards received by the referrer is the same with those for the Trade Reward Program.

## Referral Program Season 1

As previously stated, the referral program is dependent on the Trade Reward Program. The schedule and the daily reward quantum is explained in the Trade Reward Program Season 1.

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