1. How Earnings Are Calculated

For every order placed through your shop, the following are deducted from the sale price before your racer earnings are calculated:

• Product cost — the base cost to produce the item.
• Payment processing fees — charged by the payment provider on each transaction.
• Shipping — charged to the customer at cost and paid to the producer, so it passes straight through and does not reduce your earnings.
• Applicable taxes — sales tax and similar amounts collected and remitted.
• The RaceThreadz service share — our share for building, operating, fulfilling, and supporting your shop.

2. What's Left Is Your Racer Earnings

After those deductions, the remaining amount is recorded as your racer earnings and shown in your dashboard. Because these deductions vary by product, price, destination, and promotions, earnings vary from order to order.

3. Discount Codes

When an order uses a discount code that belongs to your shop — your team & crew code, or a promo code created for you — the discount is taken out of your racer earnings first. RaceThreadz covers any part of it your earnings don't cover. This is simply because it is your promotion: you decide who gets the code and how deep the discount goes.

Platform-wide promotions run by RaceThreadz across every shop are treated differently: those reduce the shared net, so both sides give up the same proportion. Your dashboard shows the discount on each affected order so you can always see what a code cost you.

4. Example (Illustrative Only)

A hypothetical $28 t-shirt might have product cost, payment processing, and the RaceThreadz service share deducted, leaving a racer-earnings amount that depends on the final numbers. Shipping and sales tax are collected from the customer and passed through, so they neither add to nor reduce earnings. This example is illustrative and does not represent your actual results.

5. No Income Guarantee

Actual racer earnings depend on product selection, pricing, order volume, discounts, refunds, taxes, and the profit-share agreement. RaceThreadz does not guarantee a specific level of sales or income.

6. Refunds and Chargebacks

If an order is refunded or charged back, the associated earnings are reversed. Related fees may also apply.

7. Estimates, Restatements, and Calculation Errors

Earnings shown in your dashboard before an order is delivered are estimates. Product and shipping costs are confirmed with our production partner after an order ships, and your recorded earnings are updated to the actual figures at that point. Your volume tier, and the share it earns you, are applied the same way.

If an amount is displayed or paid incorrectly because of a calculation or software error, the corrected calculation governs — a figure shown in error does not create an obligation to pay it. Where we have overpaid you, we may offset the difference against future earnings rather than ask you to return it. Where we have underpaid you, the difference is added to your next payout.

We will tell you when a correction changes a recorded amount, and your earnings history shows every adjustment. If you think a number is wrong, contact support and we will go through it with you.

8. Payouts

How and when recorded earnings are paid to you is described in the Payout Policy.