Ecosystem Referral

The 0FX Protocol introduces an innovative referral system aimed at fostering the ecosystem's growth by involving users in its expansion. The Tokenized Funds, created through the 0FX KuStorm Wallet, offer pre-diversified investment opportunities tailored to individual risk profiles. These funds are designed to cater to any investor's needs, leveraging the ecosystem’s products to provide enhanced risk-adjusted returns.

1

Tokenized Funds and Referral System

Tokenized Funds in the 0FX Protocol charge management fees for the personalized investment services provided. These fees are not retained by the protocol but are distributed to those who help market and expand the ecosystem. Each decentralized fund has its own referral token, representing a maximum of $1,000 invested in the fund.

2

Referral Token Mechanics

  • Initial Distribution: When $100,000 is invested, 100 referral tokens are issued.

  • Positive Fund Performance: If the fund grows to $250,000, an additional 150 tokens are distributed proportionally to existing holders.

  • Negative Fund Performance: The number of tokens remains the same, but returns decrease proportionally with the fund's value.

3

Value and Liquidity of Referral Tokens

Referral tokens earn variable management fees based on the fund's value. They represent a maximum of $1,000 and receive a portion of the fees. The token’s value in the secondary market depends on the confidence and demand for the protocol, offering potential significant indirect commissions.

Example:

  • Investment Scenario: If you recommend a $10,000 investment, earning $1,200 in management fees annually (1% Montlhy Fee - 12% Yearly).

  • Secondary Market Value: If sold at a 50% yield, the referral token could be worth $2,400, yielding a 24% commission indirectly.

  • Secondary Market Value: If sold at a 24% yield, the referral token could be worth $4,800, yielding a 48% commission indirectly.

  • Secondary Market Value: If sold at a 12% yield, the referral token could be worth $10,000, yielding a 100% commission indirectly.

Conclusion

This referral system not only provides personalized investment products but also allows users to actively contribute to the protocol’s growth. The unique approach of sharing management fees aligns with the 0FX Protocol's vision of creating user-owned finance, making it a revolutionary step in decentralized finance.

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