Earnings examples
Four illustrative cases turn the Rising Tide formula into money: a thin-pool model, a thick-pool model, a full month with four models, and what happens when you discount.
This page does one thing: it turns the three sentences of At a glance into numbers. All amounts are illustrative US dollars. Models are lettered and do not correspond to any real upstream discount. Parameters are the current values: 5% floor, 50% split, 3% loss provision.
Each case first computes the pool, then applies one formula:
pool = usage revenue − upstream cost − usage revenue × 3%
floor = usage revenue × 5%
your share = min(pool, max(floor, 50% × pool)) when pool > 0
= 0 when pool ≤ 0Case 1: thin pool, all yours
Model A's upstream discount is still shallow, so the margin is thin. The customer consumes 1,000 dollars this month.
| Item | Amount |
|---|---|
| Usage revenue | 1,000 |
| Upstream cost | 940 |
| Loss provision (3%) | 30 |
| Pool | 30 |
| Floor (5%) | 50 |
| Your share | 30 |
| Praxis | 0 |
The pool of 30 is thinner than the floor of 50, so the whole pool goes to you and Praxis earns nothing. A thin-pool model is sold at zero margin: volume first, upstream discount once volume arrives.
Case 2: thick pool, split evenly
Model B's discount has been negotiated, so the margin is thick. The same customer consumes the same 1,000 dollars.
| Item | Amount |
|---|---|
| Usage revenue | 1,000 |
| Upstream cost | 800 |
| Loss provision (3%) | 30 |
| Pool | 170 |
| Floor (5%) | 50 |
| 50% × pool | 85 |
| Your share | 85 |
| Praxis | 85 |
The pool of 170 exceeds 10% of usage revenue, so it is split 50/50 and you receive 85. On the same 1,000 dollars of usage, the thick-pool model pays you almost three times as much. The platform negotiated the discount; the even split is what you earned.
Case 3: one customer, four models, a full month
A real month mixes models. The customer consumes 9,000 dollars across four models.
| Model | Usage revenue | Upstream cost | Loss provision | Pool | Floor | Band | Your share | Praxis |
|---|---|---|---|---|---|---|---|---|
| A | 2,000 | 1,880 | 60 | 60 | 100 | Thin | 60 | 0 |
| B | 5,000 | 4,000 | 150 | 850 | 250 | Thick | 425 | 425 |
| C | 1,500 | 1,335 | 45 | 120 | 75 | Middle | 75 | 45 |
| D | 500 | 520 | 15 | −35 | 25 | Negative | 0 | −35 |
| Total | 9,000 | 560 | 435 |
Three things to read. First, each model has its own pool. Model D's negative pool pays no share, and no other model's positive pool fills it. A model like D is repriced or withdrawn. Second, model C sits in the middle band, with a pool of 120 between 5% (75) and 10% (150) of its usage revenue, so you take the floor of 75 and Praxis keeps 45. Third, the total of 560 is your share for the month, 6.2% of the customer's consumption.
Settlement holds back 10%:
| Item | Amount |
|---|---|
| Share for the month | 560 |
| Holdback (10%) | 56 |
| Payable this period | 504 |
| Holdback release | 56 after 90 days |
Case 4: you discount for the customer
To win model B, you promise the customer another 5% off. The discount comes out of your share; the pool is unchanged.
| Item | Amount |
|---|---|
| Usage revenue at the Praxis price | 5,000 |
| Discount you promised (5%) | 250 |
| Pool (unchanged) | 850 |
| Your share (split) | 425 |
| Your share after the discount | 175 |
| Praxis | 425 |
This rule protects the price chain: the customer pays the same Praxis price through any channel. A discount is your business decision, and its cost is yours.
Four cases later, every rule has a number. The rules themselves are on the next page: Rules.
At a glance
Your customers use models on Praxis, and you are paid by their usage. The money comes out of Praxis's procurement margin, never added to the customer's price; a thin margin goes to you entirely, a thick one is split in half.
Rules
The Rising Tide rules: the three price levels, the pool definition, the share formula, the order of computation and the parameter table. This page is the body of the agreement's annex; every sentence can be cited.