> For the complete documentation index, see [llms.txt](https://leverup.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://leverup.gitbook.io/docs/liquidity-layer/usdlv-point-system/point-fomula.md).

# 📏 Point Fomula

Our goal is to build a transparent perpetuals DEX that truly belongs to traders.

To ensure fairness and verifiability, we use an **on-chain** points system, and the complete point calculation logic is encoded directly in the smart contracts

Point Type

* LVP: LeverUp Point
* LVHP: LeverUp High Leverage Point

{% hint style="success" %}
LVP and LVHP are non-transferable ERC-20 [CA](/docs/misc/audits/ca.md)
{% endhint %}

User Profile Definition

* Normal User: with <= 100 leverage to open positions
* High Leverage User: with >= 500 leverage to open positions

### Point Formula

User Points = Open/Close Position Points \* Hold Position Duration Multiplier \* Team Boost Multiplier

#### Terms

<table><thead><tr><th width="166.3359375">Parameter Name</th><th width="361.296875">Parameter Function</th><th>Parameter Value %</th></tr></thead><tbody><tr><td>u1</td><td>Normal user open/close position coefficient</td><td>0.07</td></tr><tr><td>u2</td><td>High leverage user close position coefficient</td><td>0.05</td></tr></tbody></table>

#### Open/Close Position Points

{% columns %}
{% column %}
Normal User

* Open Position
  * Position Size \* u1
* Close Position
  * Position Size \* u1
    {% endcolumn %}

{% column %}
High Leverage User

* Open Position
  * Position Size \* 0
* Close Position
  * Position Size \* u2
    {% endcolumn %}
    {% endcolumns %}

{% hint style="info" %}
Position must be held for more than 3 minutes( 1 min for high leverage ) to count as a valid open/close position
{% endhint %}

#### Hold Position Duration Multiplier&#x20;

Normal User: f1(x)

High Leverage User: f2(x)

<https://www.desmos.com/calculator/rb2i2a0lvu>

<figure><img src="/files/oo7xEPDW0jCAzj1b5Gsd" alt=""><figcaption></figcaption></figure>

### Team Boost Multiplier (Referral)

* Invite Code Generation Rules
  * Code generation is enabled after reaching $100,000 in trading volume
* Referrer Benefits
  * For every **4 points** the referred user earns, the referrer gets **1 point**
* Referred User Benefits
  * Share team boost multiplier, earn extra boost point
* Team Boost Point
  * Based on total trading volume of team members in the past 24 hours
  * All accumulated points of the team receive the boost bonus corresponding to the tier reached that day

<table data-full-width="false"><thead><tr><th width="264.1640625">Team Trading Volume (24 hours)</th><th width="87.171875">Boost</th></tr></thead><tbody><tr><td>$600,000</td><td>1.05</td></tr><tr><td>$1,000,000</td><td>1.078</td></tr><tr><td>$2,00,000</td><td>1.117</td></tr><tr><td>$4,000,000</td><td>1.158</td></tr><tr><td>$8,000,000</td><td>1.2</td></tr></tbody></table>

<figure><img src="/files/ttNXkG4DUcYYhTctdxDb" alt="" width="375"><figcaption></figcaption></figure>

### Point Distribution

* Normal user pool
  * Accounts for 40% of $LV distribution
* High leverage user pool
  * Accounts for 60% of $LV distribution
* Point settlement time
  * Immediate
* Total $LV Distribution
  * 10% of total supply