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Overview

The referral system is a crucial component of the Orderly ecosystem, designed to incentivize user growth and engagement through a structured rewards program. A broker can choose to share part of its broker fees to incentives a distributor/affiliate/referrer for bringing in new traders. The ecosystem consists of three key participants:
  1. The Broker (Dex): The Dex built on Orderly. Brokers determine the fee structures and maximum rebate limits.
  2. The Referrer (Affiliate): A user (e.g., a KOL, influencer, or community leader) who invites others to trade. They can modify the fee split between themselves and the trader, but not the maximum rebate limit.
  3. The Referee (Trader): The new user who signs up using a referral code.

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How It Works

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1. The Binding Process

The Binding is established when a new user (Referee) connects to a Broker and enters a referral code, their account is permanently “bound” to the Referrer. A bound referral code can’t be removed or modified after binding.

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2. The Reward Split

When a Referee executes a trade, the trading fee is split automatically. Orderly Network retains a base protocol fee, and the remaining Broker Fee is distributed among the Broker, Referrer, and Referee based on the configured rebate settings.
  • Referrer Rebate: Commission earned by the affiliate for inviting the user.
  • Referee Rebate: A discount returned to the trader, incentivizing them to use the referral code.
  • Broker Revenue: The remaining portion of the fee retained by the platform.

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Example Calculation

The following example demonstrates how fees flow between parties. Scenario:
  • Orderly Base Fee: 3 bps Taker fee and 0 bps Maker fee.
  • Broker Fee Structure: 6 bps (0.06%) Taker Fee and 3(0.03%) bps Maker Fee.
  • Broker Net Profit for each trade(regardless of maker/trader): 3 bps.
Referral Configuration: The Broker generates a code for a KOL with an 80% Max Rebate, split 50:50 between the Referrer and Referee.
PartyShare of Net ProfitCalculation
Total Net Profit100%3 bps
Referee (Trader)40%Receives 40% of the 3 bps profit as a discount.
Referrer (Affiliate)40%Receives 40% of the 3 bps profit as commission.
Broker20%Retains the remaining 20% of the 3 bps profit.
In Dollar Terms: If a user generates $10 USDC in Net Broker Fees:
  1. $4.00 is returned to the Trader (Referee).
  2. $4.00 is credited to the Affiliate (Referrer).
  3. $2.00 is retained by the Broker.

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Configuration for Brokers

Brokers manage referral codes and rebate rates via the Orderly Admin Console. Admin console: https://admin.orderly.network/referral Click ""+ create code” button.

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Setup Fields

A pop up window will appear for Brokers to create a referral code for an address.
  1. User Address: The wallet address of the Affiliate (Referrer) who will own this code.
  2. Referral Code: The unique string traders will enter (e.g., REFFCODE1).
  3. Max Rebate: The total percentage of the Broker’s Net Profit allocated for rebates (e.g., 80%).
  4. Split Slider: Determines how the rebate is divided:
    • Referrer Rebate: The percentage of the rebate the Affiliate keeps.
    • Referee Rebate: The percentage of the rebate returned to the Trader.

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Distribution

Rewards are calculated automatically by the Orderly protocol.
  • Frequency: Rewards are typically distributed daily.
  • Currency: Payouts are settled in USDC.

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Auto referral system

Similar to the affiliate system, the auto-referral system grants traders a referral code once they reach a specific trading volume. This means that instead of manual entry, traders are automatically assigned a code based on their trading activity.