> For the complete documentation index, see [llms.txt](https://docs.fuul.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fuul.xyz/core-concepts/referrals.md).

# Referrals

Fuul lets you set up incentives to encourage affiliates, KOLs, and users to bring new participants to your project through referrals. Referrals are the core growth mechanism — they connect attribution, reward structures, and affiliate management into a single system.

## How referrals work

1. An affiliate generates a tracking link or code
2. A user clicks the link and connects their wallet → [Attribution](/core-concepts/referrals/referrals-and-attribution.md) determines which referrer gets credit
3. The user converts (trades, deposits, etc.) → rewards are calculated based on the reward structure
4. Payouts are distributed to the referrer (and optionally to the referred user)

## Referral reward structures

Once attribution is set up, you can configure how rewards flow through the referral chain:

| Structure                               | Description                                                                                    | Guide                                                                     |
| --------------------------------------- | ---------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------- |
| **Multi-level referrals**               | Reward up to 4 levels of the referral chain (direct referrer + up to 3 levels above)           | [Multi-Level Referrals](/core-concepts/referrals/multilevel-referrals.md) |
| **Sharing rewards with referred users** | Affiliates share a portion of their commission with the users they refer (double-side rewards) | [Sharing Rewards](/core-concepts/referrals/double-side-rewards.md)        |
| **Tiered rewards**                      | Different reward rates based on affiliate performance, volume, or audience segment             | [Tiers & Multipliers](/core-concepts/tiers-and-multipliers.md)            |

## Referral codes vs affiliate codes

Fuul offers two types of codes for referral tracking:

|                | Affiliate codes                                     | Referral codes                                           |
| -------------- | --------------------------------------------------- | -------------------------------------------------------- |
| **Created by** | The affiliate (with a wallet signature)             | The project (on behalf of users)                         |
| **Format**     | Custom (e.g., `my-brand`)                           | Auto-generated (7-char alphanumeric)                     |
| **Used in**    | Tracking links (`?af=code`) — automatic attribution | Accepted explicitly by the user — permanent relationship |
| **Scope**      | Cross-project                                       | Single project                                           |

See [Affiliate Codes vs Referral Codes](/core-concepts/affiliates/referral-codes-vs-invite-codes.md) for the full comparison.

## Dynamic Referral Cap

Fuul supports a **dynamic referral cap** that limits how much a referrer can earn from their referral chain. Instead of unlimited accumulation, the referrer's reward is capped based on a volume multiplier applied to their own trading volume.

### How it works

The cap is calculated as:

```
Referral Cap = Referrer's Own Volume × Volume Multiplier
```

When the referrer's accumulated referral rewards reach this cap, further referral rewards are reduced or stopped until the cap resets or the referrer's own volume increases.

**Key behaviors:**

* Works for both **Points** and **Tokens** payout types
* Setting the multiplier to `null` disables the cap entirely (unlimited referral rewards)
* The cap applies per referral cycle — it does not permanently block rewards
* Higher multipliers allow referrers to earn more relative to their own activity
* Caps are **currency-scoped**: only rewards paid in the cap's own currency count toward its accumulated total. A cap defined in one currency (e.g. USDT) is never reduced by rewards paid in a different currency (e.g. a points reward).

### Example

| Referrer | Own Volume | Multiplier | Referral Cap |
| -------- | ---------- | ---------- | ------------ |
| Alice    | $10,000    | 3×         | $30,000      |
| Bob      | $50,000    | 2×         | $100,000     |

Alice can earn up to $30,000 from her referrals before the cap kicks in. Bob can earn up to $100,000.

This mechanism prevents affiliates with minimal personal activity from earning disproportionate rewards purely through referral chains, while still rewarding active referrers who also contribute volume.

## Related pages

| Topic                             | Guide                                                                            |
| --------------------------------- | -------------------------------------------------------------------------------- |
| How attribution assigns credit    | [Attribution](/core-concepts/referrals/referrals-and-attribution.md)             |
| Track referrals in your app (SDK) | [Tracking Referrals](/developer-guide/tracking-referrals-in-your-app.md)         |
| Create affiliate links and codes  | [Affiliate Links & Codes](/developer-guide/creating-affiliate-links-or-codes.md) |
| Manage referral codes             | [Referral Codes](/developer-guide/referral-codes.md)                             |
| Build an affiliate dashboard      | [Affiliate Dashboard](/developer-guide/affiliate-dashboard.md)                   |
| Manage affiliate applications     | [Affiliate Applications](/core-concepts/affiliates/affiliate-applications.md)    |