# Rules (/en/docs/partners/rising-tide/rules)



This page is the rules themselves, without explanation or examples. Explanation is in [At a glance](/en/docs/partners/rising-tide/overview); examples are in [Earnings examples](/en/docs/partners/rising-tide/earnings). When the agreement's annex cites this page, the current version governs; the version date is in the footer.

## Terms [#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 [#three-price-levels]

1. The list price is set by the vendor's pricing page; Praxis records the source and date.
2. The Praxis price is below the list price, published site-wide and identical for all customers; the four token types share one discount.
3. 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]

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

```text
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.

## The share formula [#the-share-formula]

```text
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 [#order-of-computation]

1. Usage is frozen on the third day after the settlement period ends.
2. Usage revenue and upstream cost are aggregated per (partner, customer, model).
3. r is determined from the partner's total consumed revenue for the period (once tiers are enabled).
4. The floor and the share are computed per (customer, model).
5. Related-party transactions are zeroed; refunds are reversed against the original period.
6. 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 [#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](/en/docs/partners/rising-tide/governance).