# Sharing Rewards with Referred Users

Affiliates can automatically share a portion of their rewards with the users they refer. This creates a mutual incentive: affiliates earn more by bringing in users, and referred users get rewarded for completing actions.

## How it works

When an affiliate creates a referral code with a **rebate rate**, that percentage of their payout is automatically transferred to the referred user at payout time.

|                        | Rate    |
| ---------------------- | ------- |
| Affiliate commission   | 20%     |
| Rebate rate            | 5%      |
| **Affiliate receives** | **15%** |
| **Referred user gets** | **5%**  |

The rebate rate is set on the referral code and **locked at the moment a user accepts it**. If the rate changes later, existing referrer relationships keep their original locked rate — only new relationships use the updated rate.

{% hint style="info" %}
The rebate is taken from the affiliate's share, not added on top. The total reward budget for the project remains the same.
{% endhint %}

## Configuration

Set the rebate rate when generating a referral code. The maximum allowed rebate rate is **20%** — values above this are automatically capped.

{% hint style="info" %}
See [Referral Codes](https://docs.fuul.xyz/developer-guide/referral-codes) for the full code generation API, including the `rebate_rate` parameter.
{% endhint %}

## Supported payout types

Double side rewards apply to **variable payout terms only** — programs where rewards are calculated as a percentage of volume or revenue. Fixed rewards and pool distributions do not support rebates.

## Use cases

* **VIP affiliate programs** — top affiliates attract high-value users by passing on part of their commission
* **Two-sided marketplaces** — both the referrer and the new user need an incentive to participate
* **Referral competitions** — affiliates compete by offering the best rebate to maximize their referred volume