> For the complete documentation index, see [llms.txt](https://docs.ax11.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ax11.org/automated-market-makers-amm/liquidity-prediction-market-lpm/lpm-fee-distribution.md).

# LPM Fee Distribution

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

<figure><img src="/files/ezS7iTHEx4F9rgSMf81l" 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.