# Tiers & Multipliers

Tiers and multipliers let you reward users differently based on their activity level, trading history, or any segmentation criteria. Power users unlock better rates; new users start at a fair baseline.

Both features use **audiences** — user segments defined by static lists or dynamic conditions — to apply different reward rates.

| Feature         | How it works                      | Applies to                 |
| --------------- | --------------------------------- | -------------------------- |
| **Tiers**       | Different reward rate per segment | Variable and Fixed payouts |
| **Multipliers** | Boosts a user's share of a pool   | Proportional Pool payouts  |

## Tiers

Tiers assign different reward rates to different user segments. The **highest-matching tier wins** — tiers never stack or compound.

**Example: Tiered affiliate commissions**

| Audience | Criteria                | Commission |
| -------- | ----------------------- | ---------- |
| Gold     | Referred volume > $100K | 20%        |
| Silver   | Referred volume > $10K  | 10%        |
| Default  | Everyone else           | 5%         |

A Gold-tier affiliate earns 20%, not 20% + 10% + 5%.

**Configuration:** In your incentive payout terms, create one payout group per audience:

```
Payout group 1: audience = "Gold"    → commission = 20%
Payout group 2: audience = "Silver"  → commission = 10%
Payout group 3: (no audience)        → commission = 5%   ← default fallback
```

The system evaluates all groups the user qualifies for and applies the highest rate.

{% hint style="info" %}
If a user belongs to multiple audiences, only the highest-value payout group is applied. Tiers never compound.
{% endhint %}

## Multipliers

Multipliers scale a user's effective contribution when calculating pool shares. A 3× multiplier triples the weight of their volume in the pool calculation — giving them a proportionally larger slice of the pool.

**Example:**

| User  | Volume  | Multiplier   | Effective value |
| ----- | ------- | ------------ | --------------- |
| Alice | $50,000 | 3× (Gold)    | $150,000        |
| Bob   | $30,000 | 2× (Silver)  | $60,000         |
| Carol | $20,000 | 1× (Default) | $20,000         |

Alice's pool share = $150K / $230K ≈ **65%** (vs 50% without multipliers).

**With fair (square root) distribution:**

```
UserValue = Sqrt(Multiplier × UserContributionValue)
UserShare = UserValue / Sum(AllUserValues) × PoolAmount
```

{% hint style="info" %}
When a user qualifies for multiple multipliers, only the highest multiplier applies.
{% endhint %}

## Audience types for segmentation

| Condition                 | Description                                  |
| ------------------------- | -------------------------------------------- |
| **Token balance**         | Hold a minimum amount of a specific token    |
| **User total volume**     | Total action volume in the program           |
| **Number of conversions** | Completed N or more qualifying actions       |
| **Points balance**        | Accumulated N or more points                 |
| **Referred volume**       | Referred volume above a threshold            |
| **Static list**           | Manually curated list of addresses           |
| **NFT holder**            | Holders of a specific NFT collection         |
| **Dune query**            | Addresses returned by a Dune Analytics query |

{% hint style="info" %}
Display the current tier to users or fetch commission rates per tier → [Managing Audiences](https://docs.fuul.xyz/developer-guide/managing-audiences)
{% endhint %}