> For the complete documentation index, see [llms.txt](https://docs.hunt.town/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hunt.town/lptoken/fees.md).

# Fees & Economics

Every fee in lpTOKEN.fun is fixed in the contracts. There is **no performance fee and no management fee** on the vault position. Swap fees earned by the vault's own liquidity stay with holders in full.

## The fee table

| Fee                              | Rate              | Where it goes                                           |
| -------------------------------- | ----------------- | ------------------------------------------------------- |
| **Vault position swap fees**     | the pool's LP fee | **100% to holder NAV.** No skim.                        |
| **Mint**                         | 0.3%              | Protocol treasury                                       |
| **Redeem**                       | 0.3%              | Protocol treasury                                       |
| **Bootstrap, ERC-20 transfers**  | none              | n/a                                                     |
| **Launch position, target leg**  | the pool's LP fee | 40% creator · **60% vault NAV**                         |
| **Launch position, counter leg** | the pool's LP fee | 40% creator · **20% vault NAV** · 40% protocol treasury |

## How launch fees are distributed

Fee distribution on the launch position is **permissionless**: anyone can trigger it. When it runs:

* The **NAV part of the fees goes straight into the vault**.
* **Creator and treasury payouts are separate claims** that can be retried, so a recipient that cannot accept a transfer never blocks anyone else's.

The creator's claim on launch fees can be handed to another address by the current creator. Nothing else about the position moves with it.

## Price behaviour

Because a full-range LP position holds both sides of the pair, its value moves roughly with the **square root** of the price ratio rather than linearly:

```
V_t / V_0  ≈  √(P_t / P_0)      (idealized, fees excluded)
```

Here P is the token's price in the pair's other asset, such as ETH or USDC, and V is the value of an lpTOKEN share measured in that same asset. Measured that way, an lpTOKEN share has roughly **half the price sensitivity** of holding the token outright, plus the swap fees the position earns. In a pair against ETH, the dollar value also moves with ETH, so this does not mean half the volatility in dollars.

> An idealized approximation, not a promised volatility cap or return. Real outcomes depend on fees earned, impermanent loss, and how much of the pool's liquidity the vault represents. See [Risks](/lptoken/risks.md).

## How it works

The product explains its full model at [lptoken.fun/methodology](https://lptoken.fun/methodology).