Sub-Reseller Hierarchy Regulations & Compliance Guidelines

1. Overview & Multi-Tier Hierarchy Framework #

The BEX multi-tier reseller framework allows primary B2B partners (Master Resellers) to create, manage, and expand structured sub-reseller networks. This specification defines the legal boundaries, operational rules, and administrative rights governing parent-child reseller relationships. Master Resellers act as regional distributors, granting API sub-keys and dashboard access to downstream sub-resellers while maintaining full control over credit allocation and sub-network policy enforcement.

2. Credit Allocation, Margin Splits & Commission Flows #

Financial flows within the multi-tier hierarchy are strictly isolated and automated through the BEX ledger engine:

• Top-Down Credit Delegation: Sub-resellers purchase or receive volume pools exclusively from their designated parent Master Reseller. BEX does not intervene in financial transactions or credit extensions arranged directly between parent and child accounts.
• Margin Split Autonomy: Master Resellers have full authority to set custom wholesale pricing tiers, discount structures, and profit margins for each sub-reseller in their chain.
• Instant Ledger Settlement: When a sub-reseller generates an end-user access token, credit is deducted atomically from their wallet balance, which was previously allocated from the Master Reseller’s wholesale inventory.
• Non-Bypassing Guarantee: Sub-resellers cannot bypass their parent account to request direct credit top-ups from BEX, preserving the commercial structure and revenue streams of Master Resellers.

3. Compliance Isolation & Upstream Oversight #

To ensure that AUP violations or fraudulent behaviors within a sub-branch do not disrupt compliant operations across the network:

• Parent Oversight Duty: Master Resellers are responsible for monitoring their sub-reseller network to ensure adherence to BEX Acceptable Use Policies (AUP).
• Surgical Violation Isolation: If a sub-reseller engages in prohibited activities (e.g., spamming, network attacks, or deceptive marketing), BEX applies compliance restrictions surgically to that specific sub-account branch. Compliant parallel sub-networks under the same Master Reseller remain fully operational.
• Cascade Revocation Rights: Master Resellers hold the administrative authority to suspend, revoke, or reallocate credits from any sub-reseller within their hierarchy at their own discretion.

4. Hierarchy Dispute Resolution & Account Migration #

To preserve commercial stability and protect B2B investments:

• Migration Restrictions: A sub-reseller account cannot detach from its current parent or migrate under a new Master Reseller without explicit, written agreement from the existing parent account.
• Dispute Escalation: Commercial disputes regarding pricing, unpaid debts, or credit allocations between parent and child accounts must be resolved internally under the Master Reseller’s terms of service. BEX acts solely as the technical infrastructure provider and ledger validator.

5. Key Strategic & Legal Benefits #

• Scalable Business Expansion: Enables Master Resellers to build multi-layered distribution networks with automated credit controls.
• Protected Revenue Models: Guarantees that downstream sub-resellers cannot circumvent upstream partners.
• Targeted Risk Management: Surgical account suspension isolates compliance issues without collateral damage to compliant sub-networks.