# Fees

The protocol funds itself and its ecosystem entirely through **fees**. There is no team allocation of tokens.  As the protocol grows, it accrues fees, and these are distributed to the ecosystem fund & development team.

There is no "schedule" of token emissions.  All tokens are created through the usage of the protocol and scale accordingly.

### Fee itemization

There are several fees in place, used as incentives to balance the economic interests of parties.

* **Trading** (paid in `$CHAOS`).  When buying or selling `$CHAOS` on the spot market, a small fee is collected.  *Initial value:* 
  * AVAX*: 0.1% for buys, 0.3% for sells.*
  * BSC*: 0.5% for buys, 1% for sells.*
* **Unstaking** (paid in `$CHAOS`). When unstaking `$CHAOS`, a fee is collected.  This is to incentivize long-term staking to gain enough `$prCHAOS` rewards to balance the fee. *Initial value: 0.5%*
* **$ORDER loan origination** (paid in `$ORDER`). When taking out a `$ORDER` loan from locked `$CHAOS`, a one-time flat percentage fee is collected from the total allowable `$ORDER`.  This fee is large in order to disincentivize over-leveraging of `$CHAOS` loans with `$CHAOS` purchases.  *Initial value: 3%*
* **Ecosystem Growth Fee** (paid in `$prCHAOS`). The protocol mints an amount of `$prCHAOS` in proportion to *net* supply of `$CHAOS`. This dilutionary fee is designed to scale with the health of the protocol.  As more `$CHAOS` gets minted, the same proportion of `$prCHAOS` is created.  In times when `$CHAOS` is being sold back & burned, no `$prCHAOS` is generated.  *Initial value: 8% of net* `$CHAOS`

These fees solely fund the protocol & its ecosystem operations.  There are no "protocol tokens" that are portioned out to team members, insiders, or investors.

### Revenue distribution

The **Ecosystem Growth Fee** (all in `$prCHAOS`) is used to fund `$prCHAOS` emissions on secondary markets & protocols.  For example, `$prCHAOS` reward emissions for providing liquidity to an AVAX-CHAOS pool would be funded through these fees.

By redirecting the `$prCHAOS` from the protocol to external markets, the accounting for emissions becomes very straightforward and scalable.

* The `$prCHAOS` emissions to stakers is itself a fixed proportion of the global supply of `$CHAOS`.  This schedule of `$prCHAOS` **scales** with the supply of `$CHAOS`.  For example, 0.5% of the current supply of `$CHAOS` is created as `$prCHAOS` every day.
* These stakers rewards go entirely to stakers.
* A portion of this `$prCHAOS` is now deployed to incentivize activity on other protocols.  For example, adding liquidity to AMMs, or depositing `$CHAOS` in Synthetic Or Lending Protocols.  This way of rewarding (or "bribing") involvement with other projects **scales** with the usage of ONC.
* The **Ecosystem Growth Fee** is a flat rate of net `$CHAOS` produced.  It **scales** with the total supply of the protocol.  This approach ties the rate of `$prCHAOS` emissions to the actual magnitude of the protocol, rather than putting tokens on an arbitrary **timetable** schedule.

Fees from trading, `$prCHAOS`, and `$ORDER` loan origination go to the funding the development team,  marketing, content creation, and bug bounties.  These fees are paid in `$ORDER` & `$CHAOS`, and are not suitable candidates for emissions elsewhere.