# Tier-Weight Mechanics

0xPAD uses a novel tier-weight mechanics to ensure that every IDO allocation is fair for all participants. Based on the participation type or membership level, a user fall under a given tier which has a given max allocation and depending on the token weight of the users, they get a weighted max allocation.
Details of the mechanics of the Tier-weight protocol is presented here.

### IDO Allocation

The IDO allocation a user receives depends on two factors, these are:
• The participation type or the membership tier of the user.
• The token weight of the user with respect to the protocol's token threshold.
These factors can be expressed in three important parameters which defines the allocation of the user, the parameters are:
1. 1.
$A_{max}$
which is the maximum possible allocation of the IDO.
2. 2.
$A_f$
which is the allocation factor of each tier or membership level/type, and
3. 3.
$Q_{threshold}$
which is the protocol's token weight threshold.

#### If $Q_{user}\ge Q_{threshold}$​

If the tokens staked, LP staked or token held by a user is
$Q_{user}\ge Q_{threshold}$
, then the IDO allocation of this user is given by:
$A_{user}=A_f\times A_{max}$

#### If $Q_{user}< Q_{threshold}$​

If the tokens staked, LP staked or token held by a user is
$Q_{user}< Q_{threshold}$
, then the IDO allocation of this user is given by:
$A_{user}=\frac{Q_{user}}{Q_{threshold}}\times A_f\times A_{max}$
It should be noted that for fairness of allocation distribution, the maximum possible allocation
$A_{max}$
and the protocol's token weight threshold
$Q_{threshold}$
for a given IDO are the same for all tier levels.
Also, the tier allocation factors
$A_f$
for each tier or membership level are given by:
Tier
Allocation Factor
Guest
0.2
Bronze
0.4
Silver
0.6
Gold
0.8
Platinum
1.0

### For Example

For clarity, we consider the following IDO example with two scenario.
For a given IDO, given that
$A_{max}=10,000$
BUSD and
$Q_{threshold}=30,000$

#### Scenario I: $Q_{user}\ge Q_{threshold}$​

In this scenario, the users stake or tokens held
$Q_{user}\ge 30,000$
0xPAD. Then the user's allocation for the IDO will be:
$A_{user}=A_f\times A_{max}=10,000\times A_f$
Then, depending on the tier of the user, the allocations of the user are as follows:
1. 1.
If the user is a GUEST participant, then:
$A_{user}=10,000\times A_f=10,000\times 0.2 = 2,000$
BUSD
2. 2.
If the user is a BRONZE participant, then:
$A_{user}=10,000\times A_f=10,000\times 0.4 = 4,000$
BUSD
3. 3.
If the user is a SILVER participant, then:
$A_{user}=10,000\times A_f=10,000\times 0.6=6,000$
BUSD
4. 4.
If the user is a GOLD participant, then:
$A_{user}=10,000\times A_f=10,000\times 0.8=8,000$
BUSD
5. 5.
If the user is a PLATINUM participant, then:
$A_{user}=10,000\times A_f=10,000\times 1.0=10,000$
BUSD

#### Scenario II: $Q_{user}​

In this scenario, the users stake or tokens held
$Q_{user}
0xPAD. Then the user's allocation for the IDO will be:
$A_{user}=\frac{Q_{user}}{30,000}\times 10,000\times A_f$
Assuming
$Q_{user}=12,000$
0xPAD, then depending on the tier of the user, the allocations of the user are as follows:
1. 1.
If the user is a GUEST participant, then:
$A_{user}=\frac{Q_{user}}{30,000}\times 10,000\times A_f=\frac{12,000}{30,000}\times 10,000\times 0.2 =800$
BUSD
2. 2.
If the user is a BRONZE participant, then:
$A_{user}=\frac{Q_{user}}{30,000}\times 10,000\times =A_f=\frac{12,000}{30,000}\times 10,000\times 0.4=1,600$
BUSD
3. 3.
If the user is a SILVER participant, then:
$A_{user}=\frac{Q_{user}}{30,000}\times 10,000\times 0A_f=\frac{12,000}{30,000}\times 10,000\times 0.6=2,400$
BUSD
4. 4.
If the user is a GOLD participant, then:
$A_{user}=\frac{Q_{user}}{30,000}\times 10,000\times A_f=\frac{12,000}{30,000}\times 10,000\times 0.8=3,200$
BUSD
5. 5.
If the user is a PLATINUM participant, then:
$A_{user}=\frac{Q_{user}}{30,000}\times 10,000\times A_f=\frac{12,000}{30,000}\times 10,000\times 1.0=4,000$
BUSD
It should be noted that
$Q_{threshold}$
for 0xPAD token is different from that of LP tokens for liquidity miners.