What is the Rebate Mechanism?

The Solomon DeFi Vault rebate mechanism is designed to reward users for their participation and referrals. It functions by returning a percentage of the yield generated by the vault, based on your own deposit activity as well as the activity of users you have referred. This system encourages users to engage with the platform actively and to bring in new users, which helps to grow the overall ecosystem.

Key Points to Note:

Rebates are Yield-Based

• The rebate you receive is a percentage of the yield generated by the vault, not the principal you deposited.

• This structure ensures sustainability and prevents the platform from becoming a Ponzi scheme, where the payouts exceed the actual returns.

Referral Codes are Mandatory

• When signing up, every user must enter a referral code (also known as a promo code). This code is permanent and cannot be changed after registration.

• Users should thoroughly test and ensure their referral strategy before promoting it widely.

Rebates Paid at Maturity

• Rebates are only paid out when the vault reaches its maturity date.

• Since the yield is not realized until the vault matures, intermediate withdrawals of rebates are not possible.