# Reward Flow & Calculation

{% hint style="info" %}
Operator and jurisdiction: BASIS is operated by BASIS DIGITAL INFRASTRUCTURE LTD, a Seychelles IBC (LEI: [254900IX2F2KCWNSSS64](https://lei.bloomberg.com/leis/view/254900IX2F2KCWNSSS64)).
{% endhint %}

The referral network operates on discrete settlement events. Reward distribution is triggered when an eligible downstream claim event is processed.

## 1) Event sequence

```mermaid
flowchart TD
 A[Downstream user unstakes or triggers claim settlement] --> B[Rewards are finalized]
 B --> C[Referral engine evaluates eligible upstream participants]
 C --> D[System checks active nodes, eligibility, and policy constraints]
 D --> E[Rewards distributed to eligible upstream accounts]
```

## 2) Calculation base

{% hint style="info" %}
Reward variables
{% endhint %}

| Variable         | Meaning                                                     |
| ---------------- | ----------------------------------------------------------- |
| C                | Downstream claim amount, displayed in USDT-equivalent terms |
| r\_A, r\_B, r\_C | Reward rates for eligible referral nodes                    |
| Cap              | Maximum reward ceiling defined by policy                    |

{% hint style="info" %}
Node reward formula for Node A:

$$
\text{Reward}\_A = C \cdot r\_A
$$

Total upstream reward remains bounded by Cap.
{% endhint %}

Production logic may include additional eligibility checks, state validation, anti-abuse filters, and contribution-based reward controls.

## 3) Worked example

Assume:

* You qualify for a referral structure where Node A and Node B are active
* Your direct referral settles a claim valued at 100 in USDT-equivalent display terms

Then:

* Node A reward = 100 × 15% = 15

If a downstream participant one level further settles another claim valued at 100:

* Node B reward = 100 × 8% = 8

Combined rewards remain subject to the applicable reward cap.

{% hint style="warning" %}
Displayed examples use USDT-equivalent accounting for calculation clarity only. Settlement, balances, staking, and withdrawals on BASIS are managed through native assets and corresponding stTokens.
{% endhint %}

## 4) VIP3 Leadership bonus

A VIP3 Leadership bonus may apply to qualified participants with broader ecosystem contribution.

This bonus:

* Rewards sustained network contribution
* May extend beyond standard Node C scope where policy permits
* Always remains within the applicable maximum reward ceiling

## 5) Important constraints

* No qualifying claim event means no reward distribution
* No active eligible node means no reward distribution
* The configured cap cannot be exceeded
* Eligibility is determined by current system state and policy rules at the time of settlement

These controls support auditability, deterministic reward processing, and bounded reward issuance.

## 6) Operational notes

{% tabs %}
{% tab title="Settlement Logic" %}

* Rewards are evaluated on discrete claim settlement events
* Distribution is policy-bound and state-dependent
* Invalid or ineligible paths are excluded automatically
  {% endtab %}

{% tab title="Risk Controls" %}

* Deterministic execution paths
* State machine-based validation
* Math-constrained reward ceilings
* Anti-abuse monitoring and structural integrity checks
  {% endtab %}

{% tab title="Infrastructure Context" %}

* Research support from Base58 Labs
* Structural alpha framework with deterministic execution controls
* BHLE infrastructure targeting sub-50μs latency and 100K+ OPS
  {% endtab %}
  {% endtabs %}

***

Next: read Grace Period & Tier Maintenance.


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