# LPM Fee Distribution

In LPM, fees will be the same as the current fee of that pool.

<figure><img src="https://3863856966-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FS2OizyGVYUKamcRPx7md%2Fuploads%2F6oplsa1H4t3jPZm4WlGL%2FToken%20Emission.png?alt=media&#x26;token=68bff3f1-d634-4e2b-8e53-b7c1c450d5d6" alt=""><figcaption><p>LPM Fees Distribution</p></figcaption></figure>

#### Fee on Entry or Exit:

* **80% Reward Pool**
  * 80% of the transaction fee is redistributed among liquidity providers based on the side of the market (e.g., "Bear" or "Bull") they are exiting or trading out of.
    * **40% to Non-Betting LPs**
      * Rewards liquidity providers who have not actively staked their LP tokens. This ensures even passive participants gain value from the protocol.
    * **40% to Staking LPs**
      * Rewards users who actively stake their liquidity tokens. This is designed to encourage active participation and alignment with market predictions.
      * **Staking Promotion:** Users are encouraged to stake LP tokens with a balanced allocation of **50% Bear** and **50% Bull**, ensuring market neutrality and fostering healthier liquidity dynamics.
* **20% Protocol Revenue**
  * 20% of the transaction fee is allocated to the protocol treasury for long-term development, governance, and operational sustainability.