2.2 Locking Rules

Clear, enforceable rules for locking, unlocking, and membership state

Locking is the mechanism that establishes RH membership. The locking rules define how RH is committed, how membership tiers are derived from that commitment, and how a user’s membership state changes over time. RH is designed so that locking is transparent, auditable, and rule-driven, with minimal discretionary intervention.

Locking Modes

RH supports a small set of lock configurations (the “Lock Options”). Each lock creates an on-chain position that includes the locked amount and a lock period.

Lock Options (Initial Set)

• 7 days

• 30 days

• 90 days

• 180 days

Each lock option is associated with a duration multiplier (see Section 2.1). Lock options are intended to remain stable and limited in number to preserve simplicity.

Creating a Lock (How Locking Starts)

A lock begins when a user deposits RH into the membership contract under a chosen lock option.

• Start time: The lock start time is the timestamp (or block) at which the lock transaction is confirmed.

• Locked amount: The deposited RH amount is recorded for that lock position.

• Lock period: The selected lock option determines the minimum commitment period.

A user may create multiple lock positions. This allows flexible strategies (e.g., a long-term base lock plus a shorter lock for program participation), while maintaining full on-chain transparency.

Membership State & Tier Calculation

Membership tier is derived from the user’s aggregate membership points (MP), which are calculated from all active locks:

• MP is calculated per lock using the lock’s amount and duration multiplier.

• Aggregate MP is the sum of MP across all active lock positions.

Tier evaluation is performed using snapshots taken at defined checkpoints (e.g., epoch boundaries) to reduce last-minute manipulation and to keep program accounting predictable.

Unlocking Rules (How Unlocking Works)

Unlocking is permitted only according to the lock rules:

• Before maturity: RH locked under a fixed period is not unlockable until the lock period has elapsed.

• After maturity: Once the lock period ends, the user may unlock the position and withdraw RH.

If a user unlocks, their membership points and tier may decrease accordingly at the next snapshot checkpoint, since the on-chain commitment has changed.

Early Exit (Optional Policy)

As an initial design choice, RH may adopt one of the following approaches:

• No early exit: Fixed-term locks cannot be exited early (simplest and most manipulation-resistant).

• Early exit with penalty: Early exit is allowed but incurs a penalty (e.g., a percentage of the locked amount) directed to the rewards pool or treasury.

If early exit is enabled, the exact penalty rate, destination, and conditions must be disclosed explicitly and treated as protocol parameters.

Snapshot and Accounting Rules

To keep the system fair and auditable:

• Snapshots define eligibility: Program eligibility and tier-based weighting are determined by snapshot states, not by continuously fluctuating balances.

• Epoch-bound updates: Tier and reward weights are typically applied per epoch, using the most recent valid snapshot.

• Anti-last-minute behavior: Snapshot timing and rules are designed to reduce “lock right before rewards, unlock right after” patterns.

Special Cases and Safeguards

The protocol may include safeguards to protect users and the system, such as:

• Emergency pause: In the event of a security incident, locking and/or reward claiming may be temporarily paused.

• Migration policy (if applicable): If contracts are upgraded or migrated, users must be provided with clear instructions and a defined migration window.

All locking rules and active parameters should be published transparently. Any changes to lock options, penalties, or snapshot policies must follow the governance and operational controls described later in this whitepaper.