Rewards and fees

Trading fees

Price-market fees start from a base fee. A staking discount can reduce the base component, and a pool with the Marginal Xi model enabled can further discount a balancing slice or surcharge the worsening slice of an open. See Fees and staking for the full fee order and limits.

Where price-market fees go

A v24 pool splits each collected protocol fee among five destinations:

• an LP share, paid only when fee-sharing weight exists
• a creator share, paid only when the market has an active, configured creator recipient
• a referral share, paid only when a valid referral binding exists for the trade
• a bounty reserve share
• the treasury, which receives the remainder

The split is configured per pool. There is no universal default such as a fixed 60% LP share. Configuration caps each share rate and keeps at least a minimum treasury share.

The LP share is credited directly to the pool's LP fee reserve, denominated in collateral. It is independent of Funding accounting and of the Safety Reserve. Fee-sharing LPs claim it from the pool.

The creator, referral, and treasury shares are booked to external fee records at trade time and paid out by a permissionless flush operation. A flush moves already-booked amounts to their configured recipients and is rejected while the pool is in EmergencyPause.

LP rewards

LP rewards come from fee allocation and Funding accrual, not from guaranteed yield:

• Every v24 liquidity lot accrues trader-paid Funding through its funding weight. Claim it through the pool's Funding claim flow.
• Opt-in fee-sharing lots also earn the LP trading-fee share. Claim it separately from the LP fee reserve.

LPs are the counterparty to traders, so redeemable value can fall below the amount deposited. See Price market liquidity.

Earn Vault returns

An optional Earn Vault can hold a price-market LP strategy on behalf of shareholders. Its marked NAV includes the idle buffer and the last recorded LP value. The keeper's harvest moves claimed trading fees and safely claimable Funding into the idle buffer. Returns are not a protocol subsidy and can be negative. See Earn vaults.

Rebalancing incentives

On a pool that enables the Marginal Xi model, a risk-reducing action slice receives a lower fee in that transaction. This is an immediate fee adjustment, not a later reward claim. External reward campaigns are separate and deployment-dependent. See Rebalancing and incentives.

Staking discounts

Price-market pools can discount the base fee using a virtual vTACO balance from TACO staking:

• The default discount module ships nine tiers, from 5% off at the lowest threshold up to 50% off at the top tier.
• Thresholds and rates are configured in FeeDiscountModuleV24, and the module can grant at most 90% off.
• Each pool also caps the applied discount through its own configuration.
• The discount applies only to the base fee. It never reduces a risk surcharge.

If the discount module is unavailable or returns an invalid rate, the trade proceeds without a staking discount.

What to verify

• Which fee split does the active pool configure, and does fee-sharing weight exist?
• Are rewards claimed manually, and is there a lock period?
• Does the fee quote include your discount and the final cap?
• Does the final protocol fee fit your maxProtocolFee limit?
• What separate keeper, oracle update, and gas costs apply?
• Is the reward UI using live contracts or demo data?
• Does the active deployment actually publish the Earn or reward campaign contracts?