Money distribution.
Each member receives up to 50% of his/her referral's income (but not more than s/he deposited + 0.01 btc at a time) and pays about 50% of his/her income to his/her sponsor and possibly random member(s). [3]
Member's income = member's deposits + referral payments + random payments.
Member's expenditure = member's withdrawals + withdrawal fees + sponsor payments + random payments.
Member's balance = member's income - member's expenditure.
Yes! This is definitely a pyramid scheme.
Half of whatever money you deposit goes to your "sponsor," while half of the money your "referrals" deposit goes to you.
And yes, some users do make a profit, but only the ones at the very top.