Points Principles

While many crypto points programs devolve into short-term, extractive farming games, we are returning to first principles to align users with the protocol's long-term health. The program is guided by a transparent set of core principles.

Guiding Design Principles

• Reward real, productive protocol usage that strengthens long-term health.

• Reward sustained participation rather than one-off actions.

• Incentivize genuine contribution and disincentivize short-term speculation or system gaming.

• Protect real users by safeguarding against sybil attacks and whale domination.

• Favor early contributors, as early participation holds greater value.

• Treat points as earned reflections of contribution, not entitlements.

How Points Are Earned

Points accrue across four primary categories:

Actual Protocol Usage

Points are driven by net productive capital, calculated as (Splits - Redeems) + Swaps + (Liquidity Provided - Liquidity Withdrawn). Long-term, net committed capital matters more than short-term flows. Greater weight is placed on net splitting activity and net liquidity provision.

Referrals

Rewards are based on real economic contribution, measured by the revenue generated by referred users. Vanity metrics and superficial activity are not rewarded.

Trading Competition

This serves as an educational mechanism to help users understand the utility of SMART Tokens in a hands-on environment. It is designed to be interactive, accelerate protocol adoption, and put RiskFi on the DeFi map.

Discretionary

Contributions that strengthen the ecosystem in other ways, including user education and feedback, constructive participation, and community building.

---

The Risk Protocol reserves the right to modify the points program as needed to ensure it remains aligned with these principles and continues to protect genuine contributors.