Rules & Distribution Policy

Version 1.0 | Last updated: December 2024

Note:

This is not native Bitcoin on the Bitcoin network. Your purchase provides Bitcoin-backed exposure via Coinbase's cbBTC token on Base.

1. Fee Structure

Each $5 purchase is allocated as follows:

$0.10 - Platform operations fee
$0.20 - Contribution to bonus pool
$4.70 - Net cbBTC purchase amount

Additional payment processor fees may apply depending on your payment method.

2. Milestone Triggers

Milestones are triggered based on the daily close price of Bitcoin:

A milestone is triggered when the BTC daily close (00:00 UTC) is at or above the target price
Price source: CoinGecko API (bitcoin/usd)
Once triggered, the milestone cannot be un-triggered
Distribution begins after the milestone is triggered

3. Bonus Distribution Rules

When a milestone is triggered, bonus distributions follow these deterministic rules:

Pro-Rata Distribution (Default)

The bonus pool is distributed proportionally based on each participant's sats allocation:

participant_bonus = (participant_sats / total_sats) * bonus_pool

Early Tier Bonus (Optional)

Some milestones may include multipliers for early participants:

Participants 1-100: 2x multiplier
Participants 101-500: 1.5x multiplier
Participants 501+: 1x multiplier

The specific distribution policy for each milestone is published before the campaign begins and cannot be changed once participants have joined.

4. Eligibility

Only completed purchases (status: COMPLETED) are eligible
Purchase must be completed before the milestone is triggered
Each receipt is eligible for each milestone independently
Failed or refunded purchases are not eligible

5. No Lottery Mechanics

hi5btc does not use any lottery, raffle, or random selection mechanics.

All distributions are deterministic and rule-based
No element of chance determines who receives bonuses
All eligible participants receive distributions according to the published formula
There are no "winners" or "losers" - only participants

6. Transparency

Pool wallet address is publicly published and verifiable on BaseScan
All swaps and transactions are onchain and auditable
Milestone triggers are based on public price data
Distribution calculations can be independently verified

7. Amendments

These rules may be updated for future campaigns. However, rules for an active campaign with existing participants will not be changed retroactively. Any changes will only apply to new milestones or new campaigns.

Rules Version Hash

v1.0-december2024-draft

This hash can be used to verify the integrity of these rules.