# Rebates

The rebates program allows users to be able to receive back a portion of the premium when purchasing options on our platforms. 

(Currently set at 20%)

## Contract Details

Contract address: (?)\
Audit result: (?)

### How it works

Our system keeps track of all transactions done and once a user's option purchase has been confirmed on chain, we allocate the rebate amounts to the user.\
We craft a merkle root on a 7-day basis to designate all user's rebates for the entire 7 days. All merkle roots are stored on chain in our rebates contract for claim verification purposes.\
A user must claim separately for purchases that are on a different 7 day interval.

*Assuming our rebates system starts on Sept 1st, the first 7-day cycle would include Sept 1 to 7. Rebates are eligible to be claimed two days after the merkle root is pushed on chain.*

E.g \
\
User purchased options twice on different day Sept 1 and Sept 2.\
User needs to wait until the merkle root of Sept 1-7 is added on chain.\
We craft the merkle root and push it on chain on Sept 8.\
User can claim the rebates in a single transaction for the purchasing done separately on Sept 1 and 2\
after Sept 10.

E.g\
User purchase options twice on different days Sept 1 and Sept 8\
User needs to wait until the merkle root of Sept 1-7 is added on chain.\
We craft the merkle root and push it on chain on Sept 8.\
User can claim the rebates for Sept 1 purchase after Sept 10.\
\
The next set of merkle root will be pushed on Sept 15th\
User then can claim the rebates for Sept 8 purchase after Sept 17th 01:00 AM

### Rebates Calculation

**All rebates will be in units of AVAX . The amount is calculated based on AVAX real time spot price when purchase is successfully executed on chain.**\
\
E.g\
User purchased an option with a premium of $100. \
user will be eligible to receive $20 (0.20 \* $100) in rebates.\
At the moment when the purchase is successfully executed on chain, AVAX price is $20.\
user will be eligible to the rebates reward of **1 AVAX** ($20 / $20 = 1)\
When user claims the rebate, AVAX price has increased to $30, user is still eligible to claim the full 1 AVAX that was designated.

**Please be aware that we will only rebate a fixed 20%, so once we are low on rebates, we will not grant rebates to orders in which we cannot rebate the full 20%.  You can refer to the banner at the homepage to see how much AVAX is left for reference.**\
\
E.g\
Assuming at the time we have 1 AVAX left for rebates with a value of $20 per AVAX.\
\
If user purchases an option with a premium of $200, the eligible rebate would be $40 ($200 \* 0.20).\
This is equivalent to 2 AVAX ( $40 / $20 ). Unfortunately we only have 1 AVAX left so we will not grant rebate in this case.\
\
If user purchases an option with a premium of $50, the eligible rebate would be $10 ($50 \* 0.20).\
This is equivalent to 0.5 AVAX ($10 / $20). This is below the 1 AVAX we have left, so we will grant the rebate to the user.

### How to claim

On the portfolio page, you will be able to find the rebates section, we've made it easy for you guys to claim the rebates in a single button click for a single 3 day timeframe!