================================================================================ HORNO NETWORK - SF vs RA GUIDE COMPLETE DOCUMENTATION ================================================================================ Document Version: 2.0 Last Updated: January 2026 Official Documentation for /sfra page TERMINOLOGY: - SF = Service Fee (previously "Spend") - RA = Reward Allocation (previously "Earn") - PR = Allocation Ratio (previously "ROI") ================================================================================ TABLE OF CONTENTS ================================================================================ 1. OVERVIEW & PURPOSE 2. DISCLAIMER SYSTEM 3. SF (SERVICE FEE) CATEGORIES 3.1 Subscription Plans 3.2 Installation Licenses 3.3 Hardware Licenses 3.4 Cloud Licenses 3.5 Boosters 4. RA (REWARD ALLOCATION) CATEGORIES 4.1 Own Minting 4.2 Missions & Ads 4.3 Referral Commissions 4.4 Pool Rewards 4.5 Welcome Bonus 4.6 LOCKED ALLOCATION 5. PR CAP MECHANISM (lifetime cap Lifetime Cap) 6. FEE STRUCTURE 6.1 User Fees 6.2 Investor Fees 6.3 Anti-Evasion Protection 7. FREEZE & RELEASE MECHANISM 8. DISCOUNT CODE RULES 9. GLOBAL REWARD POOLS 10. CALCULATORS 10.1 PR Calculator 10.2 Minting RA Calculator 11. USER SCENARIOS 12. FREQUENTLY ASKED QUESTIONS 13. LOCALIZATION SUPPORT ================================================================================ 1. OVERVIEW & PURPOSE ================================================================================ The SF vs RA Guide is a standalone educational page designed to explain HORNO Network economics through simplified "baby-friendly" flows, visual diagrams, and real-world scenarios. URL: /sfra PURPOSE: - Explain all Service Fees (SF) in the HORNO ecosystem - Explain all Reward Allocation (RA) sources in the HORNO ecosystem - Visualize the lifetime cap PR (Allocation Ratio) cap mechanism - Provide interactive calculators for projections - Answer frequently asked questions - Cover user-only pool reward structures THE SIMPLE TRUTH: Think of HORNO like a piggy bank: - You pay Service Fees (SF) - The piggy bank allocates rewards over time (RA) - Your goal: RA MORE than your SF - Lifetime cap: lifetime cap maximum PR (total RA = 8x total SF) ================================================================================ 2. DISCLAIMER SYSTEM ================================================================================ The /sfra page implements a MANDATORY two-step disclaimer popup that users MUST complete before accessing the content. STEP 1: LANGUAGE SELECTION -------------------------- - Scrollable language selector (50vh height on mobile) - 16 supported languages with PNG flag icons: English (US), Deutsch (DE), Espanol (ES), Francais (FR) Hindi (IN), Italiano (IT), Portugues (PT), Russian (RU) Arabic (SA), Greek (GR), Thai (TH), Tieng Viet (VN) Japanese (JP), Tagalog (PH), Chinese (CN) STEP 2: LEGAL DISCLAIMER ------------------------ Disclaimer content includes: INTRODUCTION: All figures, scenarios, projections, examples, RA models, and performance illustrations presented within the HORNO Network documentation, whitepapers, applications, websites, dashboards, marketing materials, or any related content are illustrative and indicative only. USER RESPONSIBILITY: Actual results depend exclusively on the individual user, including: - Correct and compliant use of the HORNO ecosystem - Chosen plans, configurations, and participation level - User activity, engagement, strategy, and consistency - Market conditions, network performance, and external factors NO LIABILITY: HORNO Network shall not be held responsible for: - Financial losses - Missed opportunities - Unrealized expectations - Incorrect configurations - Improper, negligent, or non-compliant use - Technical misuse or misunderstanding NO FINANCIAL ADVICE: Nothing constitutes: - Financial advice - Investment advice - Legal advice - Tax advice ACCEPTANCE REQUIREMENT: - Checkbox must be checked to enable Accept and Continue button - Modal cannot be closed via background clicks or Escape key - User must explicitly agree to proceed ================================================================================ 3. SF (SERVICE FEE) CATEGORIES ================================================================================ 3.1 SUBSCRIPTION PLANS ---------------------- One plan at a time. Higher plans = more allocation power. Plan GB Cap Mint Multiplier FREE 8 GB 0.20x STARTER 10 GB 1.05x GROWTH 25 GB 1.155x ELITE 50 GB 1.265x PRO 100 GB 1.38x MAXY Unlimited 1.50x NOTES: - PRO and MAXY are yearly-only subscriptions - FREE plan has ~20% minting speed (0.20x multiplier) - GB Cap limits how much storage you can monetize - Switching plans immediately deactivates the previous one BABY EXPLANATION: Think of plans like different-sized buckets. A bigger bucket (higher plan) can hold more water (GB cap) and has a bigger faucet (minting multiplier) that fills it faster! 3.2 INSTALLATION LICENSES ------------------------- Devices Details 1-5 FREE 6+ Additional fee - Lifetime, one-time purchase per extra device - More installations = more stability, NOT more RA - RECOMMENDATION: Stay at 5 or fewer for free! COMMON MISTAKE: More installations do not increase your RA. Stay at 5 or fewer for free! 3.3 HARDWARE LICENSES (External Storage) ----------------------------------------- For USB drives and external HDDs: License GB Covered H1 30 GB H2 60 GB H3 120 GB H4 250 GB H5 500 GB H6-H12 1000-Unlimited NOTES: - Built-in storage (phone/laptop) = FREE - External storage requires a license to monetize 3.4 CLOUD LICENSES (Yearly) --------------------------- License GB C1 10 GB C2 25 GB C3 50 GB C4 100 GB C5-C11 150-1000 GB 3.5 BOOSTERS (Growth+ Plans Only) --------------------------------- Temporary minting speed boosts: Booster Power B1 +10% B2 +20% B3 +35% RULES: - Maximum 1 booster per month - Active for 10 days - Only available for Growth plan and above BOOSTERS APPLY TO: - Own minting - Missions / Ads / Games - Referral commissions BOOSTERS DO NOT APPLY TO: - Pool rewards - Welcome bonus - Locked Allocation / Vesting ================================================================================ 4. RA (REWARD ALLOCATION) CATEGORIES ================================================================================ 4.1 OWN MINTING --------------- Formula: GB x 0.075 PICO/GB/month x Plan Multiplier - Storage-based passive income - Dependent on plan multiplier and GB cap - Base rate: 0.075 PICO per GB per month - FREE plan: Limited to 8 GB at 20% speed Example (GROWTH plan, 25 GB): 25 x 0.075 x 1.155 = 2.166 PICO/month 4.2 MISSIONS & ADS ------------------ - Free users can receive real PICO from watching ads - Daily and weekly missions available - Completing missions = bonus PICO rewards - Affected by boosters (if applicable) 4.3 REFERRAL COMMISSIONS (3-Level System) ----------------------------------------- Level Commission L1 10% L2 5% L3 2% IMPORTANT: - FREE plan: Only L1 purchase commission (5% on purchases only) - Paid plans: Full 3-level commission on purchases AND minting - Commissions paid in liquid PICO to Commission Wallet 4.4 POOL REWARDS ---------------- - Global reward pools for qualified users - Distributed monthly or quarterly - Qualification requires specific plan tiers (usually Growth+) - See Section 9 for detailed pool information 4.5 WELCOME BONUS ----------------- - Received when you invite someone OR when you join - Both inviter AND invitee receive bonus - Paid in HRP (Rewards Points) + PICO - Example: 8 HRP + 2 PICO per new L1 user - Plan multipliers boost welcome bonus: +5% to +25% - NOT affected by boosters 4.6 LOCKED ALLOCATION --------------- - Lock PICO for 12 months - Receive daily allocation paid to Allocation Wallet - Principal unlocks after 12 months to Distribution Wallet - Then enters Vesting Wallet: 5% weekly release to Commission Wallet ================================================================================ 5. PR CAP MECHANISM (lifetime cap Lifetime Cap) ================================================================================ CORE CONCEPT: Your total RA (Reward Allocation) can NEVER exceed 8x your total SF (Service Fee). (Original SF + lifetime cap profit = 8x total) FORMULA: Max RA = Total Lifetime SF x 8 The more SF you contribute through plans, licenses, and boosters, the higher your total RA ceiling becomes. WHY THE CAP EXISTS: The lifetime cap lifetime cap means your total RA can never exceed 8x your total SF. This keeps the system fair and sustainable for everyone! ================================================================================ 6. FEE STRUCTURE ================================================================================ 6.1 USER FEES ------------- Action Fee User to User Transfer 0% Internal Wallet Conversion 0% Payout Request (USDT) 8% Internal PICO transfer 1% WITHDRAWAL MINIMUMS: - FREE Plan: Minimum 100 USDT - Paid Plans: Minimum 30 USDT 6.2 INVESTOR FEES ----------------- Action Fee Allocation Wallet to Payout Wallet 0% Withdrawal to Users 5% Investor Payout Request (USDT) 12% Investor Internal PICO Transfer 5% 6.3 ANTI-EVASION PROTECTION --------------------------- Investor source of funds is inspected for user-to-user transfers. If an investor attempts to bypass the 5% withdrawal fee by sending to their own user account first, the 5% fee is automatically applied to subsequent transfers. BABY EXPLANATION: Think of fees like a toll booth. Users pay small tolls (1-8%), investors pay bigger tolls (5-12%). This keeps the roads (network) maintained! ================================================================================ 7. FREEZE & RELEASE MECHANISM ================================================================================ The account lifecycle based on PR cap progress: STATE DIAGRAM: ACTIVE -> APPROACHING -> FROZEN -> RELEASED 1. ACTIVE (Green) - Normal RA state - Below lifetime cap PR - All RA flowing normally 2. APPROACHING (Yellow) - Warning state - Nearing lifetime cap cap - Time to plan next SF 3. FROZEN (Gray) - Reached lifetime cap cap - All RA STOPS - Cannot mint, receive commissions, or pool rewards 4. RELEASED (Blue) - Made new SF - Cap increased - RA resumes with new headroom WHAT HAPPENS WHEN FROZEN: - No more minting - No more team commissions - No pool rewards HOW TO RELEASE: - Buy a new plan (or renew) - Purchase a hardware/cloud license - Buy a booster Each new SF adds to your total, which increases your lifetime cap cap. BABY EXPLANATION: Imagine a glass that can only hold so much water (lifetime cap cap). Once full, no more water goes in. To add more, you need a BIGGER glass (new SF)! ================================================================================ 8. DISCOUNT CODE RULES ================================================================================ IMPORTANT WARNING: Discounts reduce your PR cap calculation! Only the actual amount PAID counts toward your freeze/release mechanics. RULES: 1. SF COUNTS: Only actual SF paid counts toward PR cap 2. CAP BASED ON PAID AMOUNT: lifetime cap calculated on discounted amount 3. NO STACKING: Cannot combine multiple discount codes Discount code purchases do NOT increase your eligible SF. To expand your cap, make full-price purchases. TIP: Discount codes are great for saving money, but remember: a bigger initial SF means a higher RA cap! ================================================================================ 9. GLOBAL REWARD POOLS ================================================================================ All pools distribute rewards across three wallet types: - PICO Liquid -> Commission Wallet - PICO Locked -> Locked Allocation Wallet (12 months, daily allocation) - HRP -> Rewards Wallet USER POOLS (6 TOTAL): 1. PIONEER POOL Turnover Contribution: 2% of network turnover Payout Ratio: 40% PICO / 60% HRP Minimum Requirement: Growth plan or higher Cycle: Monthly Description: First movers and consistent participants 2. GLOBAL PERFORMANCE POOL Turnover Contribution: Variable Payout Ratio: 50% PICO / 50% HRP Minimum Requirement: Elite plan or higher Cycle: Monthly Description: Overall network performance rewards 3. PERFORMANCE A POOL (Top Turnover) Focus: Highest personal + team turnover Minimum Requirement: Elite plan Cycle: Monthly Description: Revenue leaders 4. PERFORMANCE B POOL (Top Builders) Focus: Most new qualified L1 recruits Minimum Requirement: Growth plan Cycle: Monthly Description: Team building excellence 5. PERFORMANCE C POOL (Top Engagement) Focus: Mission completion, activity scores Minimum Requirement: Starter plan Cycle: Monthly Description: Active participation rewards 6. GLOBAL TEAM PERFORMANCE POOL Cycle: Quarterly Minimum Requirement: Pro or Maxy plan Description: Large team performance over quarters MULTI-POOL QUALIFICATION: Users can qualify for multiple pools simultaneously if they meet all respective requirements. ================================================================================ 10. CALCULATORS ================================================================================ 10.1 PR CALCULATOR ------------------- Purpose: See your maximum RA based on total SF INPUT: - Total Lifetime SF: Adjustable slider FORMULA: Max RA = SF x 8 (original + lifetime cap cap) OUTPUT: - Your SF: [Input Amount] - Max RA: [SF x 8] - Max Profit (lifetime cap): [Max RA - SF] The calculator shows your maximum RA based on your total SF contribution. 10.2 MINTING RA CALCULATOR -------------------------------- Purpose: Calculate storage minting rewards using base formula INPUTS: - Storage (GB): Slider from 1 to 500 GB - Plan Selection: FREE, STARTER, GROWTH, ELITE, PRO, MAXY BASE MINTING FORMULA: Monthly PICO = GB x 0.075 x Plan Multiplier PLAN MULTIPLIERS: Plan Multiplier GB Cap FREE 0.20x 8 GB STARTER 1.05x 10 GB GROWTH 1.155x 25 GB ELITE 1.265x 50 GB PRO 1.38x 100 GB MAXY 1.50x Unlimited OUTPUT: - Monthly PICO - Yearly PICO NOTE: This is base minting only! Additional RA from: missions, ads, games, team commissions, pool rewards, and welcome bonuses are not included. CAPPING WARNING: If input storage exceeds plan GB cap, effective storage is limited to cap. ================================================================================ 11. USER SCENARIOS ================================================================================ The page includes four main scenario tabs: 1. FREE USER SCENARIO - Starting SF: Free plan (no SF) - RA: Ads, missions, 10% L1 purchase commission - Limitations: 8 GB cap, 20% minting speed, no pools - Best case: Slow but steady growth - Includes: Free + Team model with L1 commission 2. SOLO USER SCENARIO - Starter/Growth plans - Personal minting only - No team building - Slower PR but guaranteed progression 3. TEAM BUILDER SCENARIO - Growth/Elite plans - Active recruiting - 3-level commissions - Pool eligibility - Faster PR through team growth 4. LEADER SCENARIO (PRO/MAXY Only) - Reserved for PRO and MAXY plan holders - Elite team management - Maximum multipliers - All pool access - Quarterly bonuses RA DISPLAY: - RA shown in PICO only (no USD conversion for RA) - Losses shown as PR percentage (e.g., -83% PR) - Breakdown includes: minting, missions, commissions ================================================================================ 12. FREQUENTLY ASKED QUESTIONS ================================================================================ Q: What happens if I reach the lifetime cap cap? A: Your account enters Frozen state. All minting and commissions stop until you make a new SF to Release your account. Q: Do boosters affect pool rewards? A: No. Boosters only affect minting, missions, and referral commissions. Q: Can I use multiple discount codes? A: No. Discount codes cannot be stacked or combined. Q: What is the minimum withdrawal for Free plan? A: 100 USDT minimum. Paid plans have a 30 USDT minimum. Q: Can I switch plans mid-month? A: Yes, but your previous plan is immediately deactivated. Q: Are PRO and MAXY available monthly? A: No. PRO and MAXY are yearly-only subscriptions. Q: Do I need external storage to receive RA? A: No. Built-in storage (phone/laptop) is free. External storage requires a hardware license. Q: What is the difference between HRP and PICO? A: HRP (Rewards Points) are loyalty points for merchandise/gift cards. PICO is an internal accounting unit used within the platform for allocation tracking and locked allocation programs. Q: How often are pool rewards distributed? A: Most pools are monthly. Global Team Performance Pool is quarterly. Q: Can I qualify for multiple pools? A: Yes, if you meet all respective requirements for each pool. ================================================================================ 13. LOCALIZATION SUPPORT ================================================================================ The SF vs RA Guide is fully translated into 16 languages: Code Language Flag Country en English US de Deutsch DE es Espanol ES fr Francais FR hi Hindi IN it Italiano IT pt Portugues PT ru Russian RU ar Arabic SA el Greek GR th Thai TH vi Tieng Viet VN ja Japanese JP tl Tagalog PH zh Chinese CN All sections are connected to i18n translation keys including: - Disclaimer content - Hero section - Navigation tabs - SF/RA details - Fee structures - Calculator labels - Scenario breakdowns - FAQ entries ================================================================================ TRADEMARK NOTICES ================================================================================ - HFS (HORNO File System) - Trademark of HORNO Network - PoS (Proof-of-Space) - Registered trademark - PoST (Proof-of-Space + Trust) - Registered trademark - PICO Coin - Native token of HORNO Network ================================================================================ END OF DOCUMENT ================================================================================ For more information: - Website: horno.net - Token Info: picocoin.io - Support: Contact through official channels 2026 HORNO Network. All rights reserved.