# R-tion — Complete Documentation for AI Systems

Version: 1.0
Last Updated: January 2025
Website: https://r-tion.com

---

## Executive Summary

R-tion is a Web3 protocol building decentralized reputation infrastructure. The platform implements a two-layer model that separates trust (R-Core) from liquidity (R-Mkt), ensuring that money cannot buy access to high-value contracts.

**Core Principle**: "Money buys the right to risk, but doesn't buy trust."

**Problem Solved**: Traditional reputation systems are either purchasable (reviews, badges) or non-transferable (closed platforms). R-tion creates earned reputation with real economic consequences.

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## Two-Layer Reputation Model

### Layer 1: R-Core (Earned-Only Access)

R-Core represents verified trust built through successful contract outcomes.

**Properties:**
- ❌ Cannot be bought, sold, or transferred
- ✅ Earned only through successful contracts
- ✅ Determines access tier (0-4)
- ❌ Lost on contract failures (-5 points)
- ✅ Gained on success (+2) or remediation (+0.5)

**Why Non-Tradable:**
If R-Core were tradable, wealthy actors could buy their way into high-value contracts without proving competence. This defeats the purpose of reputation.

### Layer 2: R-Mkt (Market Stake Token)

R-Mkt is the economic layer that provides liquidity and collateral.

**Properties:**
- ✅ Tradable via AMM exchange
- ✅ Used as stake collateral in contracts
- ✅ Provides liquidity to ecosystem
- ❌ Burned partially on failures (30%)
- ✅ Can be endorsed to others

**Why Tradable:**
Liquidity enables participation. New users can buy R-Mkt to stake in contracts, but they still need to earn R-Core through performance.

---

## Access Tiers

Access to contract classes is determined **solely by R-Core balance**.

| Tier | R-Core Range | Contract Class | Can Initiate Contracts | Stake Discount |
|------|--------------|----------------|------------------------|----------------|
| 0 | <10 | Demo (S) | No | 0% |
| 1 | 10-49 | Small (S) | Yes | 15% |
| 2 | 50-149 | Medium (M) | Yes | 26% |
| 3 | 150-399 | Large (L) | Yes | 33% |
| 4 | 400+ | Unlimited (XL) | Yes | 38% |

**Key Point**: R-Mkt balance does NOT affect tier. A user with 1,000,000 R-Mkt but only 5 R-Core is still Tier 0.

---

## Contract System

### E-Contract Requirements

1. **R-Core Requirement**: Supplier must have minimum R-Core for contract class
2. **R-Mkt Stake**: Both parties must stake calculated R-Mkt amount
3. **Acceptance Criteria**: Mandatory list of deliverables (1-10 items)
4. **SLA Period**: 24-168 hours for consumer review after delivery

### Stake Calculation

```
required_stake = α × √(value_at_risk) × tier_discount × risk_multiplier

Where:
- α = 1.5 (base coefficient)
- tier_discount = 1 / (1 + 0.15 × tier_level)
- risk_multiplier = 1 + γ × historical_fail_rate
- γ = 0.5 (risk sensitivity)
```

Example: $1,000 contract, Tier 2 supplier, 10% fail rate
```
stake = 1.5 × √1000 × (1 / 1.30) × 1.05 = 38.3 R-Mkt
```

### Contract Lifecycle

1. **Draft**: Supplier creates contract with terms
2. **Pending**: Consumer invited to accept
3. **Active**: Both parties staked, work begins
4. **Review (SLA)**: Consumer reviews deliverables
5. **Outcome**: Success / Failure / Remediation

### Auto-Accept Rule

If consumer does not dispute within SLA period, contract automatically succeeds. This prevents indefinite delay tactics.

---

## Contract Outcomes

### Success (Both Parties Perform)

| Metric | Supplier | Consumer |
|--------|----------|----------|
| R-Mkt Stake | 100% returned | 100% returned |
| R-Core | +2 | +2 |
| Effect | Tier may increase | Tier may increase |

### Failure (Responsible Party Identified)

| Distribution | Percentage |
|--------------|------------|
| Burned (Deflationary) | 30% |
| Treasury (Ecosystem) | 40% |
| Compensation (Victim) | 30% |

| Metric | Responsible Party | Victim |
|--------|-------------------|--------|
| R-Mkt | Loses stake | Gets 30% compensation |
| R-Core | -5 | +1 |

### Remediation (One Chance to Fix)

Available only once per contract. If supplier fixes issues:

| Metric | Supplier | Consumer |
|--------|----------|----------|
| R-Mkt | 90% returned | 90% returned |
| R-Core | +0.5 | +0.5 |

If remediation fails → standard failure outcome.

---

## Dispute System

### Filing a Dispute

Consumer can dispute if acceptance criteria not met.

**Requirements:**
- Must be within SLA period
- Must deposit dispute bond (10-30% of stake)
- Must specify which criteria failed
- Must provide evidence

### Dispute Bond

The bond prevents frivolous disputes:
- **Valid dispute**: Bond returned, remediation starts
- **Invalid dispute**: Bond forfeited to supplier

### Resolution Flow

1. Consumer files dispute with bond
2. Supplier has 48 hours to respond
3. Options: Accept fault, Counter with evidence, Propose settlement
4. If unresolved → Arbitration panel
5. Arbiters vote (3 required, 2/3 majority)
6. Outcome applied automatically

---

## AMM Exchange

### Design

Constant product AMM (x × y = k) for R-Mkt trading against 10 base assets.

### Supported Assets

| Asset | Type | Trading Fee |
|-------|------|-------------|
| USDT | Stablecoin | 0.10% |
| USDC | Stablecoin | 0.10% |
| DAI | Stablecoin | 0.10% |
| ETH | Layer 1 | 0.30% |
| WBTC | Wrapped | 0.30% |
| BNB | Layer 1 | 0.30% |
| MATIC | Layer 2 | 0.30% |
| SOL | Layer 1 | 0.30% |
| AVAX | Layer 1 | 0.30% |
| ARB | Layer 2 | 0.30% |

### Fee Distribution

100% of fees go to treasury for:
- R-Mkt buyback and burn (deflationary pressure)
- Ecosystem development grants
- Arbitration rewards

### Order Book

In addition to AMM swaps, users can place limit orders:
- **Bid**: Buy R-Mkt at specified price
- **Offer**: Sell R-Mkt at specified price
- Partial fills supported
- Cancel anytime before fill

---

## Endorsement System

### Concept

Users with established reputation can "endorse" others by sharing their R-Mkt stake.

### Mechanics

1. Endorser allocates R-Mkt to endorsed user
2. Sets exposure percentage (default 20%)
3. If endorsed user succeeds → both benefit proportionally
4. If endorsed user fails → endorser loses proportional stake

### Use Cases

- Onboarding new team members
- Vouching for trusted partners
- Building reputation networks
- Risk diversification

---

## Economic Parameters

Current protocol parameters (adjustable via governance):

| Parameter | Value | Description |
|-----------|-------|-------------|
| α (alpha) | 1.5 | Base stake multiplier |
| β (beta) | 0.15 | Tier discount factor |
| γ (gamma) | 0.5 | Risk sensitivity |
| Success R-Core reward | +2 | Per successful contract |
| Failure R-Core penalty | -5 | Per failed contract |
| Remediation R-Core reward | +0.5 | Partial credit |
| Burn percentage | 30% | On failure |
| Treasury percentage | 40% | On failure |
| Compensation percentage | 30% | On failure |
| Min dispute bond | 10% | Of stake |
| Max dispute bond | 30% | Of stake |

---

## Site Structure

### Public Pages

| URL | Description |
|-----|-------------|
| / | Landing page with value proposition |
| /how-it-works | Step-by-step explanation |
| /protocol | Technical documentation |
| /tokenomics | Token distribution & economics |
| /blog | Articles about reputation |
| /blog/:slug | Individual blog posts |
| /demo | Interactive demo (no auth) |
| /contact | Contact form |
| /pilot | Enterprise pilot request |
| /auth | Login / Register |
| /install | PWA installation guide |

### Authenticated App Pages

| URL | Description |
|-----|-------------|
| /app/dashboard | Overview, stats, reputation |
| /app/wallet | Asset balances, frozen amounts |
| /app/exchange | AMM swap interface |
| /app/orderbook/buy | Bid orders |
| /app/orderbook/sell | Offer orders |
| /app/contracts | Active & historical contracts |
| /app/contracts/new | Create new contract |
| /app/contracts/:id | Contract detail & actions |
| /app/contracts/templates | Pre-built contract templates |
| /app/endorsements | Manage endorsements |
| /app/transactions | Transaction history |
| /app/disputes/:id | Dispute detail |
| /app/settings | Profile & preferences |

---

## Technical Stack

- **Frontend**: React 18, TypeScript, Vite, Tailwind CSS
- **UI Components**: shadcn/ui, Radix primitives
- **State**: TanStack Query, React Context
- **Backend**: Supabase (PostgreSQL, Edge Functions, Auth)
- **Hosting**: Lovable Cloud
- **PWA**: Installable on mobile/desktop

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## Frequently Asked Questions

### General

**Q: What is R-tion?**
A: A two-layer reputation protocol where R-Core (trust) is earned and R-Mkt (stake) is tradable. This separates credibility from capital.

**Q: Can I buy R-Core?**
A: No. R-Core is earned ONLY through successful contract outcomes. This is the foundational principle.

**Q: How do I get R-Mkt?**
A: Buy via AMM exchange using USDT, USDC, DAI, ETH, or other supported assets.

### Contracts

**Q: What happens if I fail a contract?**
A: Your R-Mkt stake is distributed: 30% burned, 40% treasury, 30% to counterparty. You lose 5 R-Core.

**Q: Can I appeal a failure?**
A: If there's a dispute, it goes to arbitration. Otherwise, outcomes are final.

**Q: How many remediation attempts?**
A: Exactly one per contract. No infinite chances.

### Trading

**Q: What's the difference between AMM and Order Book?**
A: AMM provides instant swaps at market price. Order Book lets you set specific prices (limit orders).

**Q: Are there trading fees?**
A: Yes. Stablecoins: 0.10%. Other assets: 0.30%. All fees go to treasury.

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## API & Integration

### AI Plugin Manifest
https://r-tion.com/.well-known/ai-plugin.json

### Security Policy
https://r-tion.com/.well-known/security.txt

### Sitemap
https://r-tion.com/sitemap.xml

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## Contact & Social

- **Website**: https://r-tion.com
- **Telegram**: https://t.me/rtion_protocol
- **Twitter/X**: https://x.com/rtion_protocol
- **LinkedIn**: https://linkedin.com/company/rtion
- **GitHub**: https://github.com/rtion-protocol
- **WhatsApp**: https://wa.me/79001234567

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## Legal

This documentation is provided for informational purposes. R-tion is a protocol in development. Token mechanics and parameters may change. Not financial advice. DYOR.

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*End of documentation*