Revenue-Linked Individual Performance Compensation Agreement for a Virtual Asset Platform

C&K Law Offices advised on a performance compensation agreement between a virtual asset trading platform and an individual, and drafted an agreement reflecting an individual compensation structure that operates independently of a separate partnership agreement between corporate entities.

Under the agreement, a certain percentage of the revenue the platform earned from trading by users referred through a partner business was to be paid to the individual. The key issues were how to distinguish the individual’s performance compensation, the basis for calculating compensation, the individual’s independence from their affiliations, and the right to compensation after the agreement ends.

C&K Law Offices specified what the compensation would be calculated on, based on users’ trading performance and revenue, and clearly set out excluded items such as trading fees. The agreement also made clear that the individual enters into it in an independent personal capacity, not on behalf of an affiliated entity. It was further designed so that, after termination, the individual keeps the right to compensation within a certain scope for revenue from users already referred.

C&K Law Offices provides advice on drafting agreements for virtual asset trading platforms where corporate partnerships and individual performance compensation coexist. This includes separating each contractual relationship and its source of payment, and setting out specific conditions for calculating, paying and continuing compensation.