myLot Referal System Clarification

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Hi all, I just wanted to clarify the referal system. I am going to use an example to explain my perception of the system. So, I refer 5 people. 1 of the people I refer refers 100 people and 1 of them refers 100 people and 1 of them refers 100 people and then 1 of them refers 100 people and then one of them refers 100 people. So conceptually I have 7 tiers. The first tier is what I make myself. The second tier I make 25% of all 5 of those people I refer. Now do I make money off of the referals that my referal makes? For instance I would make 25% of the 25% that my second tier referal makes when he refers the 100 people. Thus I would make 6.25% from that Third tier. I would earn 1.5% from the 4th tier, .39% from the 5th tier, .09% from the 6th tier and .02% from the 7th tier. So basically in order to make money from the 4th through 7th tiers, your referals must make hundreds of dollars. Tiers 1 through 3 actually are reasonable and if you can refer quality people you're golden. Does this make sense to anyone. Or is it the referal system just for my own referals and thats it? Or did I just wait 5 minutes figuring this scenario out? haha Thanks, petriellog2