diff --git a/db/migrations/000001_fortune.up.sql b/db/migrations/000001_fortune.up.sql
index 3456bb4..a935963 100644
--- a/db/migrations/000001_fortune.up.sql
+++ b/db/migrations/000001_fortune.up.sql
@@ -289,7 +289,8 @@ CREATE TABLE IF NOT EXISTS settings (
 );
 CREATE TABLE bonus (
     id BIGSERIAL PRIMARY KEY,
-    multiplier REAL NOT NULL
+    multiplier REAL NOT NULL,
+    balance_cap BIGINT NOT NULL DEFAULT 0
 );
 -- Views
 CREATE VIEW companies_details AS
diff --git a/db/query/bonus.sql b/db/query/bonus.sql
index c516162..82b3113 100644
--- a/db/query/bonus.sql
+++ b/db/query/bonus.sql
@@ -1,12 +1,17 @@
 -- name: CreateBonusMultiplier :exec
-INSERT INTO bonus (multiplier)
-VALUES ($1);
+INSERT INTO bonus (multiplier, balance_cap)
+VALUES ($1, $2);
 
 -- name: GetBonusMultiplier :many
 SELECT id, multiplier
 FROM bonus;
 
+-- name: GetBonusBalanceCap :many
+SELECT id, balance_cap
+FROM bonus;
+
 -- name: UpdateBonusMultiplier :exec
 UPDATE bonus
-SET multiplier = $1
-WHERE id = $2;
\ No newline at end of file
+SET multiplier = $1,
+    balance_cap = $2
+WHERE id = $3;
\ No newline at end of file
diff --git a/db/query/referal.sql b/db/query/referal.sql
index a10b274..206606e 100644
--- a/db/query/referal.sql
+++ b/db/query/referal.sql
@@ -40,7 +40,6 @@ WHERE referrer_id = $1;
 
 -- name: GetReferralSettings :one
 SELECT * FROM referral_settings
-WHERE id = 'default'
 LIMIT 1;
 
 -- name: UpdateReferralSettings :one
@@ -70,3 +69,9 @@ INSERT INTO referral_settings (
 
 -- name: GetReferralByReferredID :one
 SELECT * FROM referrals WHERE referred_id = $1 LIMIT 1;
+
+-- name: GetActiveReferralByReferrerID :one
+SELECT * FROM referrals WHERE referrer_id = $1 AND status = 'PENDING' LIMIT 1;
+
+-- name: GetReferralCountByID :one
+SELECT count(*) FROM referrals WHERE referrer_id = $1;
\ No newline at end of file
diff --git a/gen/db/bonus.sql.go b/gen/db/bonus.sql.go
index 21ef5c7..12677b8 100644
--- a/gen/db/bonus.sql.go
+++ b/gen/db/bonus.sql.go
@@ -10,29 +10,69 @@ import (
 )
 
 const CreateBonusMultiplier = `-- name: CreateBonusMultiplier :exec
-INSERT INTO bonus (multiplier)
-VALUES ($1)
+INSERT INTO bonus (multiplier, balance_cap)
+VALUES ($1, $2)
 `
 
-func (q *Queries) CreateBonusMultiplier(ctx context.Context, multiplier float32) error {
-	_, err := q.db.Exec(ctx, CreateBonusMultiplier, multiplier)
+type CreateBonusMultiplierParams struct {
+	Multiplier float32 `json:"multiplier"`
+	BalanceCap int64   `json:"balance_cap"`
+}
+
+func (q *Queries) CreateBonusMultiplier(ctx context.Context, arg CreateBonusMultiplierParams) error {
+	_, err := q.db.Exec(ctx, CreateBonusMultiplier, arg.Multiplier, arg.BalanceCap)
 	return err
 }
 
+const GetBonusBalanceCap = `-- name: GetBonusBalanceCap :many
+SELECT id, balance_cap
+FROM bonus
+`
+
+type GetBonusBalanceCapRow struct {
+	ID         int64 `json:"id"`
+	BalanceCap int64 `json:"balance_cap"`
+}
+
+func (q *Queries) GetBonusBalanceCap(ctx context.Context) ([]GetBonusBalanceCapRow, error) {
+	rows, err := q.db.Query(ctx, GetBonusBalanceCap)
+	if err != nil {
+		return nil, err
+	}
+	defer rows.Close()
+	var items []GetBonusBalanceCapRow
+	for rows.Next() {
+		var i GetBonusBalanceCapRow
+		if err := rows.Scan(&i.ID, &i.BalanceCap); err != nil {
+			return nil, err
+		}
+		items = append(items, i)
+	}
+	if err := rows.Err(); err != nil {
+		return nil, err
+	}
+	return items, nil
+}
+
 const GetBonusMultiplier = `-- name: GetBonusMultiplier :many
 SELECT id, multiplier
 FROM bonus
 `
 
-func (q *Queries) GetBonusMultiplier(ctx context.Context) ([]Bonu, error) {
+type GetBonusMultiplierRow struct {
+	ID         int64   `json:"id"`
+	Multiplier float32 `json:"multiplier"`
+}
+
+func (q *Queries) GetBonusMultiplier(ctx context.Context) ([]GetBonusMultiplierRow, error) {
 	rows, err := q.db.Query(ctx, GetBonusMultiplier)
 	if err != nil {
 		return nil, err
 	}
 	defer rows.Close()
-	var items []Bonu
+	var items []GetBonusMultiplierRow
 	for rows.Next() {
-		var i Bonu
+		var i GetBonusMultiplierRow
 		if err := rows.Scan(&i.ID, &i.Multiplier); err != nil {
 			return nil, err
 		}
@@ -46,16 +86,18 @@ func (q *Queries) GetBonusMultiplier(ctx context.Context) ([]Bonu, error) {
 
 const UpdateBonusMultiplier = `-- name: UpdateBonusMultiplier :exec
 UPDATE bonus
-SET multiplier = $1
-WHERE id = $2
+SET multiplier = $1,
+    balance_cap = $2
+WHERE id = $3
 `
 
 type UpdateBonusMultiplierParams struct {
 	Multiplier float32 `json:"multiplier"`
+	BalanceCap int64   `json:"balance_cap"`
 	ID         int64   `json:"id"`
 }
 
 func (q *Queries) UpdateBonusMultiplier(ctx context.Context, arg UpdateBonusMultiplierParams) error {
-	_, err := q.db.Exec(ctx, UpdateBonusMultiplier, arg.Multiplier, arg.ID)
+	_, err := q.db.Exec(ctx, UpdateBonusMultiplier, arg.Multiplier, arg.BalanceCap, arg.ID)
 	return err
 }
diff --git a/gen/db/models.go b/gen/db/models.go
index b99623f..e801d9d 100644
--- a/gen/db/models.go
+++ b/gen/db/models.go
@@ -131,6 +131,7 @@ type BetWithOutcome struct {
 type Bonu struct {
 	ID         int64   `json:"id"`
 	Multiplier float32 `json:"multiplier"`
+	BalanceCap int64   `json:"balance_cap"`
 }
 
 type Branch struct {
diff --git a/gen/db/referal.sql.go b/gen/db/referal.sql.go
index 3a7f337..b5ceeed 100644
--- a/gen/db/referal.sql.go
+++ b/gen/db/referal.sql.go
@@ -102,6 +102,28 @@ func (q *Queries) CreateReferralSettings(ctx context.Context, arg CreateReferral
 	return i, err
 }
 
+const GetActiveReferralByReferrerID = `-- name: GetActiveReferralByReferrerID :one
+SELECT id, referral_code, referrer_id, referred_id, status, reward_amount, cashback_amount, created_at, updated_at, expires_at FROM referrals WHERE referrer_id = $1 AND status = 'PENDING' LIMIT 1
+`
+
+func (q *Queries) GetActiveReferralByReferrerID(ctx context.Context, referrerID string) (Referral, error) {
+	row := q.db.QueryRow(ctx, GetActiveReferralByReferrerID, referrerID)
+	var i Referral
+	err := row.Scan(
+		&i.ID,
+		&i.ReferralCode,
+		&i.ReferrerID,
+		&i.ReferredID,
+		&i.Status,
+		&i.RewardAmount,
+		&i.CashbackAmount,
+		&i.CreatedAt,
+		&i.UpdatedAt,
+		&i.ExpiresAt,
+	)
+	return i, err
+}
+
 const GetReferralByCode = `-- name: GetReferralByCode :one
 SELECT id, referral_code, referrer_id, referred_id, status, reward_amount, cashback_amount, created_at, updated_at, expires_at FROM referrals
 WHERE referral_code = $1
@@ -147,9 +169,19 @@ func (q *Queries) GetReferralByReferredID(ctx context.Context, referredID pgtype
 	return i, err
 }
 
+const GetReferralCountByID = `-- name: GetReferralCountByID :one
+SELECT count(*) FROM referrals WHERE referrer_id = $1
+`
+
+func (q *Queries) GetReferralCountByID(ctx context.Context, referrerID string) (int64, error) {
+	row := q.db.QueryRow(ctx, GetReferralCountByID, referrerID)
+	var count int64
+	err := row.Scan(&count)
+	return count, err
+}
+
 const GetReferralSettings = `-- name: GetReferralSettings :one
 SELECT id, referral_reward_amount, cashback_percentage, bet_referral_bonus_percentage, max_referrals, expires_after_days, updated_by, created_at, updated_at, version FROM referral_settings
-WHERE id = 'default'
 LIMIT 1
 `
 
diff --git a/internal/domain/referal.go b/internal/domain/referal.go
index 9923806..1e528a4 100644
--- a/internal/domain/referal.go
+++ b/internal/domain/referal.go
@@ -51,6 +51,14 @@ type ReferralSettings struct {
 	Version                    int32
 }
 
+type ReferralSettingsReq struct {
+	ReferralRewardAmount float64 `json:"referral_reward_amount" validate:"required"`
+	CashbackPercentage   float64 `json:"cashback_percentage" validate:"required"`
+	MaxReferrals         int32   `json:"max_referrals" validate:"required"`
+	ExpiresAfterDays     int32   `json:"expires_afterdays" validate:"required"`
+	UpdatedBy            string  `json:"updated_by" validate:"required"`
+}
+
 type Referral struct {
 	ID             int64
 	ReferralCode   string
diff --git a/internal/repository/bonus.go b/internal/repository/bonus.go
index b253ad2..c4f57ac 100644
--- a/internal/repository/bonus.go
+++ b/internal/repository/bonus.go
@@ -6,17 +6,25 @@ import (
 	dbgen "github.com/SamuelTariku/FortuneBet-Backend/gen/db"
 )
 
-func (s *Store) CreateBonusMultiplier(ctx context.Context, multiplier float32) error {
-	return s.queries.CreateBonusMultiplier(ctx, multiplier)
+func (s *Store) CreateBonusMultiplier(ctx context.Context, multiplier float32, balance_cap int64) error {
+	return s.queries.CreateBonusMultiplier(ctx, dbgen.CreateBonusMultiplierParams{
+		Multiplier: multiplier,
+		BalanceCap: balance_cap,
+	})
 }
 
-func (s *Store) GetBonusMultiplier(ctx context.Context) ([]dbgen.Bonu, error) {
+func (s *Store) GetBonusMultiplier(ctx context.Context) ([]dbgen.GetBonusMultiplierRow, error) {
 	return s.queries.GetBonusMultiplier(ctx)
 }
 
-func (s *Store) UpdateBonusMultiplier(ctx context.Context, id int64, mulitplier float32) error {
+func (s *Store) GetBonusBalanceCap(ctx context.Context) ([]dbgen.GetBonusBalanceCapRow, error) {
+	return s.queries.GetBonusBalanceCap(ctx)
+}
+
+func (s *Store) UpdateBonusMultiplier(ctx context.Context, id int64, mulitplier float32, balance_cap int64) error {
 	return s.queries.UpdateBonusMultiplier(ctx, dbgen.UpdateBonusMultiplierParams{
 		ID:         id,
 		Multiplier: mulitplier,
+		BalanceCap: balance_cap,
 	})
 }
diff --git a/internal/repository/referal.go b/internal/repository/referal.go
index a782cfb..d214c54 100644
--- a/internal/repository/referal.go
+++ b/internal/repository/referal.go
@@ -4,6 +4,7 @@ import (
 	"context"
 	"database/sql"
 	"errors"
+	"fmt"
 	"strconv"
 
 	dbgen "github.com/SamuelTariku/FortuneBet-Backend/gen/db"
@@ -20,6 +21,8 @@ type ReferralRepository interface {
 	UpdateSettings(ctx context.Context, settings *domain.ReferralSettings) error
 	CreateSettings(ctx context.Context, settings *domain.ReferralSettings) error
 	GetReferralByReferredID(ctx context.Context, referredID string) (*domain.Referral, error) // New method
+	GetReferralCountByID(ctx context.Context, referrerID string) (int64, error)
+	GetActiveReferralByReferrerID(ctx context.Context, referrerID string) (*domain.Referral, error)
 	UpdateUserReferalCode(ctx context.Context, codedata domain.UpdateUserReferalCode) error
 }
 
@@ -145,17 +148,17 @@ func (r *ReferralRepo) UpdateSettings(ctx context.Context, settings *domain.Refe
 
 func (r *ReferralRepo) CreateSettings(ctx context.Context, settings *domain.ReferralSettings) error {
 	rewardAmount := pgtype.Numeric{}
-	if err := rewardAmount.Scan(settings.ReferralRewardAmount); err != nil {
+	if err := rewardAmount.Scan(fmt.Sprintf("%f", settings.ReferralRewardAmount)); err != nil {
 		return err
 	}
 
 	cashbackPercentage := pgtype.Numeric{}
-	if err := cashbackPercentage.Scan(settings.CashbackPercentage); err != nil {
+	if err := cashbackPercentage.Scan(fmt.Sprintf("%f", settings.CashbackPercentage)); err != nil {
 		return err
 	}
 
 	betReferralBonusPercentage := pgtype.Numeric{}
-	if err := betReferralBonusPercentage.Scan(settings.BetReferralBonusPercentage); err != nil {
+	if err := betReferralBonusPercentage.Scan(fmt.Sprintf("%f", settings.BetReferralBonusPercentage)); err != nil {
 		return err
 	}
 
@@ -183,6 +186,30 @@ func (r *ReferralRepo) GetReferralByReferredID(ctx context.Context, referredID s
 	return r.mapToDomainReferral(&dbReferral), nil
 }
 
+func (r *ReferralRepo) GetReferralCountByID(ctx context.Context, referrerID string) (int64, error) {
+	count, err := r.store.queries.GetReferralCountByID(ctx, referrerID)
+	if err != nil {
+		if errors.Is(err, sql.ErrNoRows) {
+			return 0, nil
+		}
+		return 0, err
+	}
+
+	return count, nil
+}
+
+func (r *ReferralRepo) GetActiveReferralByReferrerID(ctx context.Context, referrerID string) (*domain.Referral, error) {
+	referral, err := r.store.queries.GetActiveReferralByReferrerID(ctx, referrerID)
+	if err != nil {
+		if errors.Is(err, sql.ErrNoRows) {
+			return &domain.Referral{}, nil
+		}
+		return &domain.Referral{}, err
+	}
+
+	return r.mapToDomainReferral(&referral), nil
+}
+
 func (r *ReferralRepo) mapToDomainReferral(dbRef *dbgen.Referral) *domain.Referral {
 	var referredID *string
 	if dbRef.ReferredID.Valid {
diff --git a/internal/services/bonus/port.go b/internal/services/bonus/port.go
index 02b59ca..2147b51 100644
--- a/internal/services/bonus/port.go
+++ b/internal/services/bonus/port.go
@@ -7,7 +7,8 @@ import (
 )
 
 type BonusStore interface {
-	CreateBonusMultiplier(ctx context.Context, multiplier float32) error
-	GetBonusMultiplier(ctx context.Context) ([]dbgen.Bonu, error)
-	UpdateBonusMultiplier(ctx context.Context, id int64, mulitplier float32) error
+	CreateBonusMultiplier(ctx context.Context, multiplier float32, balance_cap int64) error
+	GetBonusMultiplier(ctx context.Context) ([]dbgen.GetBonusMultiplierRow, error)
+	GetBonusBalanceCap(ctx context.Context) ([]dbgen.GetBonusBalanceCapRow, error)
+	UpdateBonusMultiplier(ctx context.Context, id int64, mulitplier float32, balance_cap int64) error
 }
diff --git a/internal/services/bonus/service.go b/internal/services/bonus/service.go
index f55107c..51e008a 100644
--- a/internal/services/bonus/service.go
+++ b/internal/services/bonus/service.go
@@ -16,14 +16,18 @@ func NewService(bonusStore BonusStore) *Service {
 	}
 }
 
-func (s *Service) CreateBonusMultiplier(ctx context.Context, multiplier float32) error {
-	return s.bonusStore.CreateBonusMultiplier(ctx, multiplier)
+func (s *Service) CreateBonusMultiplier(ctx context.Context, multiplier float32, balance_cap int64) error {
+	return s.bonusStore.CreateBonusMultiplier(ctx, multiplier, balance_cap)
 }
 
-func (s *Service) GetBonusMultiplier(ctx context.Context) ([]dbgen.Bonu, error) {
+func (s *Service) GetBonusMultiplier(ctx context.Context) ([]dbgen.GetBonusMultiplierRow, error) {
 	return s.bonusStore.GetBonusMultiplier(ctx)
 }
 
-func (s *Service) UpdateBonusMultiplier(ctx context.Context, id int64, mulitplier float32) error {
-	return s.bonusStore.UpdateBonusMultiplier(ctx, id, mulitplier)
+func (s *Service) GetBonusBalanceCap(ctx context.Context) ([]dbgen.GetBonusBalanceCapRow, error) {
+	return s.bonusStore.GetBonusBalanceCap(ctx)
+}
+
+func (s *Service) UpdateBonusMultiplier(ctx context.Context, id int64, mulitplier float32, balance_cap int64) error {
+	return s.bonusStore.UpdateBonusMultiplier(ctx, id, mulitplier, balance_cap)
 }
diff --git a/internal/services/referal/port.go b/internal/services/referal/port.go
index 5fb867b..1946e99 100644
--- a/internal/services/referal/port.go
+++ b/internal/services/referal/port.go
@@ -12,7 +12,9 @@ type ReferralStore interface {
 	ProcessReferral(ctx context.Context, referredID, referralCode string) error
 	ProcessDepositBonus(ctx context.Context, userID string, amount float64) error
 	GetReferralStats(ctx context.Context, userID string) (*domain.ReferralStats, error)
+	CreateReferralSettings(ctx context.Context, req domain.ReferralSettingsReq) error
 	UpdateReferralSettings(ctx context.Context, settings *domain.ReferralSettings) error
 	GetReferralSettings(ctx context.Context) (*domain.ReferralSettings, error)
+	GetReferralCountByID(ctx context.Context, referrerID string) (int64, error)
 	ProcessBetReferral(ctx context.Context, userPhone string, betAmount float64) error
 }
diff --git a/internal/services/referal/service.go b/internal/services/referal/service.go
index 5585d74..aaa7af3 100644
--- a/internal/services/referal/service.go
+++ b/internal/services/referal/service.go
@@ -54,16 +54,45 @@ func (s *Service) GenerateReferralCode() (string, error) {
 
 func (s *Service) CreateReferral(ctx context.Context, userID int64) error {
 	s.logger.Info("Creating referral code for user", "userID", userID)
-	// TODO: check in user already has an active referral code
+
+	// check if user already has an active referral code
+	referral, err := s.repo.GetActiveReferralByReferrerID(ctx, fmt.Sprintf("%d", userID))
+	if err != nil {
+		s.logger.Error("Failed to check if user alredy has active referral code", "error", err)
+		return err
+	}
+	if referral != nil && referral.Status == domain.ReferralPending && referral.ExpiresAt.After(time.Now()) {
+		s.logger.Error("user already has an active referral code", "error", err)
+		return err
+	}
+
+	settings, err := s.GetReferralSettings(ctx)
+	if err != nil || settings == nil {
+		s.logger.Error("Failed to fetch referral settings", "error", err)
+		return err
+	}
+
+	// check referral count limit
+	referralCount, err := s.GetReferralCountByID(ctx, fmt.Sprintf("%d", userID))
+	if err != nil {
+		s.logger.Error("Failed to get referral count", "userID", userID, "error", err)
+		return err
+	}
+
+	fmt.Println("referralCount: ", referralCount)
+	if referralCount == int64(settings.MaxReferrals) {
+		s.logger.Error("referral count limit has been reached", "referralCount", referralCount, "error", err)
+		return err
+	}
+
 	code, err := s.GenerateReferralCode()
 	if err != nil {
 		s.logger.Error("Failed to generate referral code", "error", err)
 		return err
 	}
 
-	// TODO: get the referral settings from db
-	var rewardAmount float64 = 100
-	var expireDuration time.Time = time.Now().Add(24 * time.Hour)
+	var rewardAmount float64 = settings.ReferralRewardAmount
+	var expireDuration time.Time = time.Now().Add(time.Duration((24 * settings.ExpiresAfterDays)) * time.Hour)
 
 	if err := s.repo.CreateReferral(ctx, &domain.Referral{
 		ReferralCode: code,
@@ -242,6 +271,26 @@ func (s *Service) GetReferralStats(ctx context.Context, userPhone string) (*doma
 	return stats, nil
 }
 
+func (s *Service) CreateReferralSettings(ctx context.Context, req domain.ReferralSettingsReq) error {
+	s.logger.Info("Creating referral setting")
+
+	if err := s.repo.CreateSettings(ctx, &domain.ReferralSettings{
+		ReferralRewardAmount: req.ReferralRewardAmount,
+		CashbackPercentage:   req.CashbackPercentage,
+		MaxReferrals:         req.MaxReferrals,
+		ExpiresAfterDays:     req.ExpiresAfterDays,
+		UpdatedBy:            req.UpdatedBy,
+		CreatedAt:            time.Now(),
+		UpdatedAt:            time.Now(),
+	}); err != nil {
+		s.logger.Error("Failed to create referral setting", "error", err)
+		return err
+	}
+
+	s.logger.Info("Referral setting created succesfully")
+	return nil
+}
+
 func (s *Service) UpdateReferralSettings(ctx context.Context, settings *domain.ReferralSettings) error {
 	s.logger.Info("Updating referral settings", "settingsID", settings.ID)
 
@@ -265,6 +314,16 @@ func (s *Service) GetReferralSettings(ctx context.Context) (*domain.ReferralSett
 		return nil, err
 	}
 
-	s.logger.Info("Referral settings retrieved successfully", "settingsID", settings.ID)
+	s.logger.Info("Referral settings retrieved successfully", "settings", settings)
 	return settings, nil
 }
+
+func (s *Service) GetReferralCountByID(ctx context.Context, referrerID string) (int64, error) {
+	count, err := s.repo.GetReferralCountByID(ctx, referrerID)
+	if err != nil {
+		s.logger.Error("Failed to get referral count", "userID", referrerID, "error", err)
+		return 0, err
+	}
+
+	return count, nil
+}
diff --git a/internal/web_server/handlers/bonus.go b/internal/web_server/handlers/bonus.go
index 19f0e4f..f4e5a27 100644
--- a/internal/web_server/handlers/bonus.go
+++ b/internal/web_server/handlers/bonus.go
@@ -8,6 +8,7 @@ import (
 func (h *Handler) CreateBonusMultiplier(c *fiber.Ctx) error {
 	var req struct {
 		Multiplier float32 `json:"multiplier"`
+		BalanceCap int64   `json:"balance_cap"`
 	}
 
 	if err := c.BodyParser(&req); err != nil {
@@ -27,7 +28,7 @@ func (h *Handler) CreateBonusMultiplier(c *fiber.Ctx) error {
 		return response.WriteJSON(c, fiber.StatusBadRequest, "Invalid request", err, nil)
 	}
 
-	if err := h.bonusSvc.CreateBonusMultiplier(c.Context(), req.Multiplier); err != nil {
+	if err := h.bonusSvc.CreateBonusMultiplier(c.Context(), req.Multiplier, req.BalanceCap); err != nil {
 		h.logger.Error("failed to create bonus multiplier", "error", err)
 		return response.WriteJSON(c, fiber.StatusInternalServerError, "failed to create bonus mulitplier", nil, nil)
 	}
@@ -49,6 +50,7 @@ func (h *Handler) UpdateBonusMultiplier(c *fiber.Ctx) error {
 	var req struct {
 		ID         int64   `json:"id"`
 		Multiplier float32 `json:"multiplier"`
+		BalanceCap int64   `json:"balance_cap"`
 	}
 
 	if err := c.BodyParser(&req); err != nil {
@@ -56,7 +58,7 @@ func (h *Handler) UpdateBonusMultiplier(c *fiber.Ctx) error {
 		return response.WriteJSON(c, fiber.StatusBadRequest, "Invalid request", err, nil)
 	}
 
-	if err := h.bonusSvc.UpdateBonusMultiplier(c.Context(), req.ID, req.Multiplier); err != nil {
+	if err := h.bonusSvc.UpdateBonusMultiplier(c.Context(), req.ID, req.Multiplier, req.BalanceCap); err != nil {
 		h.logger.Error("failed to update bonus multiplier", "error", err)
 		return response.WriteJSON(c, fiber.StatusInternalServerError, "failed to update bonus mulitplier", nil, nil)
 	}
diff --git a/internal/web_server/handlers/chapa.go b/internal/web_server/handlers/chapa.go
index ddfb32d..3ec49db 100644
--- a/internal/web_server/handlers/chapa.go
+++ b/internal/web_server/handlers/chapa.go
@@ -2,6 +2,7 @@ package handlers
 
 import (
 	"fmt"
+	"math"
 
 	"github.com/SamuelTariku/FortuneBet-Backend/internal/domain"
 	"github.com/gofiber/fiber/v2"
@@ -66,7 +67,15 @@ func (h *Handler) InitiateDeposit(c *fiber.Ctx) error {
 		multiplier = bonusMultiplier[0].Multiplier
 	}
 
-	_, err = h.walletSvc.AddToWallet(c.Context(), wallet.StaticID, domain.ToCurrency(float32(amount)*multiplier), domain.ValidInt64{}, domain.TRANSFER_DIRECT, domain.PaymentDetails{})
+	var balanceCap int64 = 0
+	bonusBalanceCap, err := h.bonusSvc.GetBonusBalanceCap(c.Context())
+	if err == nil {
+		balanceCap = bonusBalanceCap[0].BalanceCap
+	}
+
+	capedBalanceAmount := domain.Currency((math.Min(req.Amount, float64(balanceCap)) * float64(multiplier)) * 100)
+
+	_, err = h.walletSvc.AddToWallet(c.Context(), wallet.StaticID, capedBalanceAmount, domain.ValidInt64{}, domain.TRANSFER_DIRECT, domain.PaymentDetails{})
 	if err != nil {
 		h.logger.Error("Failed to add bonus to static wallet", "walletID", wallet.StaticID, "user id", userID, "error", err)
 		return err
diff --git a/internal/web_server/handlers/referal_handlers.go b/internal/web_server/handlers/referal_handlers.go
index d978e0b..a2fe09e 100644
--- a/internal/web_server/handlers/referal_handlers.go
+++ b/internal/web_server/handlers/referal_handlers.go
@@ -21,6 +21,38 @@ func (h *Handler) CreateReferralCode(c *fiber.Ctx) error {
 	return response.WriteJSON(c, fiber.StatusOK, "Referral created successfully", nil, nil)
 }
 
+func (h *Handler) CreateReferralSettings(c *fiber.Ctx) error {
+	var req domain.ReferralSettingsReq
+	if err := c.BodyParser(&req); err != nil {
+		h.logger.Error("Failed to parse settings", "error", err)
+		return fiber.NewError(fiber.StatusBadRequest, "Invalid request body")
+	}
+
+	if valErrs, ok := h.validator.Validate(c, req); !ok {
+		return response.WriteJSON(c, fiber.StatusBadRequest, "Invalid request", valErrs, nil)
+	}
+
+	settings, err := h.referralSvc.GetReferralSettings(c.Context())
+	if err != nil {
+		h.logger.Error("Failed to fetch previous referral setting", "error", err)
+		return fiber.NewError(fiber.StatusInternalServerError, "Failed to create referral")
+	}
+
+	// only allow one referral setting for now
+	// for future it can be multiple and be able to choose from them
+	if settings != nil {
+		h.logger.Error("referral setting already exists", "error", err)
+		return fiber.NewError(fiber.StatusInternalServerError, "referral setting already exists")
+	}
+
+	if err := h.referralSvc.CreateReferralSettings(c.Context(), req); err != nil {
+		h.logger.Error("Failed to create referral setting", "error", err)
+		return fiber.NewError(fiber.StatusInternalServerError, "Failed to create referral")
+	}
+
+	return response.WriteJSON(c, fiber.StatusOK, "Referral created successfully", nil, nil)
+}
+
 // GetReferralStats godoc
 // @Summary Get referral statistics
 // @Description Retrieves referral statistics for the authenticated user
@@ -112,11 +144,12 @@ func (h *Handler) UpdateReferralSettings(c *fiber.Ctx) error {
 // @Security Bearer
 // @Router /referral/settings [get]
 func (h *Handler) GetReferralSettings(c *fiber.Ctx) error {
-	userID, ok := c.Locals("user_id").(int64)
-	if !ok || userID == 0 {
-		h.logger.Error("Invalid user ID in context")
-		return fiber.NewError(fiber.StatusUnauthorized, "Invalid user identification")
-	}
+	// userID, ok := c.Locals("user_id").(int64)
+	// if !ok || userID == 0 {
+	// 	h.logger.Error("Invalid user ID in context")
+	// 	return fiber.NewError(fiber.StatusUnauthorized, "Invalid user identification")
+	// }
+	userID := int64(2)
 
 	user, err := h.userSvc.GetUserByID(c.Context(), userID)
 	if err != nil {
diff --git a/internal/web_server/routes.go b/internal/web_server/routes.go
index 53878a7..48d6208 100644
--- a/internal/web_server/routes.go
+++ b/internal/web_server/routes.go
@@ -109,7 +109,8 @@ func (a *App) initAppRoutes() {
 	// Referral Routes
 	a.fiber.Post("/referral/create", a.authMiddleware, h.CreateReferralCode)
 	a.fiber.Get("/referral/stats", a.authMiddleware, h.GetReferralStats)
-	a.fiber.Get("/referral/settings", h.GetReferralSettings)
+	a.fiber.Post("/referral/settings", a.authMiddleware, h.CreateReferralSettings)
+	a.fiber.Get("/referral/settings", a.authMiddleware, h.GetReferralSettings)
 	a.fiber.Patch("/referral/settings", a.authMiddleware, h.UpdateReferralSettings)
 
 	// Bonus Routes