Is Codechef rating(stars) system is fair??

if some one participates in every contest,and did 1 qstn everytime and on another hand if some didnt participate in every contest but he performed good in last contest(2-3 qstns), who have more rating?

because this same thing is happening with me

You can find the rating formula in detail here :

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Your ratings and stars are completely dependent on your rank in any particular contest. If you are solving one question in every contest and suddenly a contest was so easy that almost everyone(majority) solved 2 problems then your percentile will be lower and ratings will decrease if your performance is lower than your own performance in last attempted contest, but CodeChef computes percentile with a different formula.

As described by @techie_pals: