> For the complete documentation index, see [llms.txt](https://docs.catapult.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.catapult.trade/mechanics-turbo/referral-system.md).

# Referral System

Catapult shares a portion of the platform’s revenue with users who drive volume to the protocol. Because volume is the primary driver of value for both creators (via fees) and traders (via reward pools), the referral logic scales rewards based on the total volume generated by the referred network.

### Revenue Sharing Logic

As established in the fee structure, every trade incurs a 1% collateral fee. This is split into a 0.5% creator fee and a 0.5% platform fee. The referral reward is calculated as a percentage of that 0.5% platform fee.

### Scaling Reward Tiers

The referral percentage starts at a 15% base rate and increases as the aggregate volume of all referred users grows. Based on the protocol's updated tiers, the share of the platform fee scales as follows:

| Tier   | Total Referred Volume | Referral Share of Platform Fee |
| ------ | --------------------: | -----------------------------: |
| Tier 1 |              $0 - $5M |                            15% |
| Tier 2 |            $5M - $20M |                            20% |
| Tier 3 |           $20M - $50M |                            25% |
| Tier 4 |          $50M - $150M |                            30% |
| Tier 5 |         $150M - $350M |                            35% |
| Tier 6 |           $350M - $1B |                            40% |
| Tier 7 |                 > $1B |                            45% |

### Refs of Refs?

Users also receive a 1% fee share from indirect referrals.