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.

This page is the rules themselves, without explanation or examples. Explanation is in At a glance; examples are in Earnings examples. When the agreement's annex cites this page, the current version governs; the version date is in the footer.

Terms

Term	Definition
Praxis	The platform, meaning the operating entity of the Praxis cloud
Partner	An independent entity that has signed the intermediary agreement with Praxis and been admitted after review
Customer	A paying Praxis account registered by a partner and attributed to that partner
List price	The price published on the model vendor's official pricing page, recorded with source and date
Praxis price	The price Praxis publishes to all customers, below the list price
Partner price	The price a partner promises a customer, not above the Praxis price
Usage revenue	The customer's consumed, non-refundable model usage in the settlement period, at the Praxis price
Upstream cost	The actual upstream procurement cost of that usage, including landed taxes and fees
Loss provision	Usage revenue multiplied by the loss rate, covering payment fees, chargebacks and refund losses, foreign exchange, retries and other platform losses

Prices are per model and per token type (input, output, cache write, cache read), in US dollars per million tokens, before tax.

Three price levels

The list price is set by the vendor's pricing page; Praxis records the source and date.
The Praxis price is below the list price, published site-wide and identical for all customers; the four token types share one discount.
The partner price is not above the Praxis price. Any further discount a partner grants is deducted from the partner's share and does not enter the pool.

The pool

The pool is computed per (customer, model, settlement period), all in current-period amounts:

pool = usage revenue − upstream cost − usage revenue × loss rate

The four token types of one model are summed before the sign of the pool is determined. A negative pool is not offset against another model's positive pool.

floor   = usage revenue × x
partner = 0                                     when pool ≤ 0
        = min(pool, max(floor, r × pool))       when pool > 0
Praxis  = pool − partner

The formula yields three bands. A pool not above the floor is thin: the whole pool goes to the partner. A pool not below twice the floor is thick: it is divided by r. Between the two, the partner receives the floor. The partner's amount never decreases as the pool thickens.

Order of computation

Usage is frozen on the third day after the settlement period ends.
Usage revenue and upstream cost are aggregated per (partner, customer, model).
r is determined from the partner's total consumed revenue for the period (once tiers are enabled).
The floor and the share are computed per (customer, model).
Related-party transactions are zeroed; refunds are reversed against the original period.
The holdback is deducted, the run is locked and the statement is issued.

Every usage event freezes the price version in force when it occurs; settlement only aggregates and never looks up current prices.

Parameters

Parameter	Symbol	Current value	Note
Floor rate	x	5%	A share of usage revenue
Split	r	50%	The partner's share in the thick band
Loss rate	l	3%	Reviewed quarterly and updated; the formula is unchanged
Holdback		10%	Held from each period's share, released on a rolling 90-day basis
Tiers		Not yet enabled	Provisional thresholds of 20,000 and 100,000 dollars of monthly consumed revenue; a higher r applies only to the part above each threshold

Parameter changes follow clause 2 of Governance.