# Fee Structure

### Base Rates

* Standard fee rate: 45% of transaction value
* Applies to all loyalty-based revenue sources:
  * Instant Earn activities
  * POS partner payments
  * E-marketplace transactions
  * Affiliate cashback
  * Charity donations
  * Profit withdrawals
  * Debit card cashback
* Transparent fee calculation and collection
* Automated processing through smart contracts

### Loyalty Discounts

* Fee reduction: 5% per loyalty point
* No maximum limit to loyalty points
* Minimum fee floor: 20%
* Reset rules:
  * Points reset if daily investment missed
  * Discount recalculation on reset
  * Immediate effect on fee rates

<figure><img src="https://1982180163-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMKiZIyBm1F4ct2CkLnGn%2Fuploads%2FA9ooFJ2nxal33wV2hPrm%2FLoyalty%20Discount%20Structure.png?alt=media&#x26;token=7b93beae-e924-45fb-b144-230a6c73211c" alt="" width="563"><figcaption><p>Loyalty Discount Structure</p></figcaption></figure>

### Smart Allocation

* Priority allocation to daily investment requirement
* If daily investment not made:
  * Fee first covers $1 USD equivalent investment
  * Excess goes to Additional Revenue Pool
* If daily investment completed:
  * Investment amount returned as discount
  * Remaining fee to Additional Revenue Pool

<figure><img src="https://1982180163-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMKiZIyBm1F4ct2CkLnGn%2Fuploads%2FvA0u8PWNwTEmviUiO9rW%2FSmart%20Fee%20Allocation.png?alt=media&#x26;token=3e4b1681-8e4b-49d1-814a-ca20fa7feda1" alt="" width="563"><figcaption><p>Smart Fee Allocation</p></figcaption></figure>

### Example Calculations

#### Example 1: Basic Transaction

```mermaid
Transaction Amount: 100 USD
Loyalty Score: 0 points
Base Fee: 45%
Daily Investment: Not Made

Calculation:
- Fee Amount = 100 USD × 45% = 45 USD
- Daily Investment = 1 USD
- To Additional Pool = 44 USD
- User Receives = 55 USD
```

#### Example 2: With Loyalty Discount

```mermaid
Transaction Amount: 100 USD
Loyalty Score: 3 points
Fee Reduction: 15% (5% × 3)
Applied Fee: 30% (45% - 15%)
Daily Investment: Already Made

Calculation:
- Fee Amount = 100 USD × 30% = 30 USD
- Discount Return = 1 USD
- To Additional Pool = 29 USD
- User Receives = 71 USD
```

#### Example 3: Minimum Fee

```mermaid
Transaction Amount: 100 USD
Loyalty Score: 6 points
Potential Fee: 15% (45% - 30%)
Applied Fee: 20% (minimum floor)
Daily Investment: Already Made

Calculation:
- Fee Amount = 100 USD × 20% = 20 USD
- Discount Return = 1 USD
- To Additional Pool = 19 USD
- User Receives = 81 USD
```

This fee structure creates a balanced system that:

* Rewards consistent participation
* Maintains platform sustainability
* Ensures fair value distribution
* Provides clear benefit calculation