Fees

There are two fee mechanisms in the Fenix Protocol.

• Swap fees are the fees collected when traders swap through the FLP with favorable fees to help balance the targeted weights. Swap fees are also generated when players want to get paid out in a different token than they are playing with.

• Buy/Sell FLP fees are collected when liquidity providers are adding liquidity to the Fenix Liquidity Pool. These fees are lower if the purchasing token has less weight than the targeted amounts and higher when the input token is above the targeted weight.

All fees are stored in the Reward Router contract and distributed by a function that can be called by anyone paying the transaction fee. This function swaps the tokens to purchase FLP and then distributes FLP to the FLP holders and FNX/vFNX staking pool.

Fees Distribution

• 25% of the fees collected are distributed to the FLP holders

• 45% of the fees collected are distributed to the FNX/vFNX staking pool

• 15% of the fees collected are distributed to the buyback or burn address

• 15% of the fees collected are distributed to the core developers

The collected fees are converted to FLP to grow the liquidity pool constantly and accumulate revenues as the price of FLP increases with the pool revenue.