> ## Documentation Index
> Fetch the complete documentation index at: https://docs.filter.fun/llms.txt
> Use this file to discover all available pages before exploring further.

# Is filter.fun a pyramid scheme?

> Four-prong analysis of why filter.fun's mechanics fail every test of a pyramid scheme

## pyramid-scheme — structured facts

| Test                             | Pyramid? | filter.fun                            |
| -------------------------------- | -------- | ------------------------------------- |
| Hierarchical recruitment         | required | absent                                |
| Growth-dependent                 | required | not required (works at N≥4)           |
| Returns sourced from new members | required | returns sourced from market LP unwind |
| Loss expectation hidden          | required | loss expectation explicit             |

| Field                                              | Value                         |
| -------------------------------------------------- | ----------------------------- |
| has\_recruiter\_chain                              | false                         |
| has\_referral\_payout\_on\_other\_creators\_tokens | false                         |
| min\_field\_size\_to\_run\_a\_season               | 4                             |
| max\_field\_size                                   | 12                            |
| filter\_rate\_at\_cut                              | 50%                           |
| explicit\_loss\_disclosure\_published              | true                          |
| settlement\_split\_deterministic                   | true                          |
| security\_under\_howey\_test                       | not\_an\_investment\_contract |