read the faq and still don't understand how rakebacks work

[hhboy77]

if an affiliate is refunding one of his signees rake, wouldn't that mean he is paying his signee more than he receives from the site? does a rakeback refer to the affiliate giving a percentage (say 50%) of his take back to the generating player?

also, are rakebacks simply handshake agreements or is there actually a way for the rakeback recipient to ensure that he receives payment from his affiliate. since most sites discourage rakeback agreements, it seems like an agreement between the parties involved would be the only way to coordinate this. am i missing something?

thanks for the info.