> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tokenlayer.network/llms.txt
> Use this file to discover all available pages before exploring further.

# Protocol Referrals

> Earn 10% of fees from users you refer to Token Layer

## Overview

Protocol referrals allow you to earn a percentage of trading fees from users you refer to Token Layer. This creates a passive income stream as your referred users trade.

## Eligibility

To create a referral code, you must:

<Check>
  Complete **\$10,000 in trading volume** on Token Layer
</Check>

Once you meet this threshold, you can create your referral code at [app.tokenlayer.network/earn](https://app.tokenlayer.network/earn).

## Earning Structure

### Referrer Rewards

<Card title="10% Commission" icon="percent">
  You receive **10% of your referred users' fees**, less any fee discount they receive
</Card>

### Reward Limits

* Referral rewards apply for a user's **first \$1 billion in volume**
* After \$1B, the referrer no longer earns from that user's trades

### Fee Discounts for Referred Users

Users who enter your referral code receive:

<Card title="4% Fee Discount" icon="tag">
  A **4% discount on all trading fees** for their first \$25 million in volume
</Card>

This discount makes your referral code attractive to new users while you still earn from their activity.

## How to Share Your Referral Code

### Get Your Unique Link

Once you create a referral code (e.g., `MYCODE`), share it using:

```
https://app.tokenlayer.network/join/MYCODE
```

### Where to Share

<CardGroup cols={2}>
  <Card title="Social Media" icon="share-nodes">
    Twitter, Discord, Telegram, etc.
  </Card>

  <Card title="Content" icon="newspaper">
    Blog posts, videos, tutorials
  </Card>

  <Card title="Communities" icon="users">
    Trading groups, forums, chats
  </Card>

  <Card title="Direct Messages" icon="message">
    Personal recommendations
  </Card>
</CardGroup>

## Claiming Rewards

### Accrual

* Referral rewards accrue for **all quote assets** (USD stablecoins)
* Track your earnings in real-time at [app.tokenlayer.network/earn](https://app.tokenlayer.network/earn)

### Claiming

<Steps>
  <Step title="Minimum Balance">
    Wait until your rewards exceed **\$1**
  </Step>

  <Step title="Claim">
    Click "Claim" on the earn page
  </Step>

  <Step title="Receive">
    Claimed rewards are reflected in your **spot balance** immediately
  </Step>
</Steps>

## Using a Referral Code

### As a New User

If you want to receive a fee discount, you can:

1. **Enter a code directly**: Visit [app.tokenlayer.network/earn](https://app.tokenlayer.network/earn)
2. **Use a referral link**: Click a friend's referral link (e.g., `app.tokenlayer.network/join/THEIRCODE`)

### Benefits

<Card title="4% Fee Discount" icon="piggy-bank">
  Save 4% on trading fees for your first \$25 million in volume
</Card>

### Important Notes

<Warning>
  Referral discounts **do not apply** to:

  * Vaults
  * Sub-accounts

  These are treated as independent accounts in the clearinghouse.
</Warning>

## Example Calculation

Let's say you refer a user who does **\$1,000 in trading fees**:

1. **User's discount**: $1,000 × 4% = $40 (user saves \$40)
2. **Net fees**: $1,000 - $40 = \$960
3. **Your commission**: $960 × 10% = **$96\*\*

The user saves money, and you earn passive income!

## API Integration

Create and manage referral codes programmatically:

<CardGroup cols={2}>
  <Card title="Create Referral Code" icon="code" href="/api-reference/referrals/create-protocol-referral-code">
    POST /create-referral-code
  </Card>

  <Card title="Enter Referral Code" icon="code" href="/api-reference/referrals/enter-protocol-referral-code">
    POST /enter-referral-code
  </Card>
</CardGroup>

## Best Practices

<Tip>
  **Quality over quantity**: Focus on referring active traders who will generate consistent volume
</Tip>

* Create educational content about Token Layer
* Highlight the unique features (omnichain tokens, low fees, etc.)
* Be transparent about the mutual benefits
* Track which channels drive the most referred volume

## Questions?

For more information about protocol referrals, click the chat icon in the bottom right corner to get help.