# Platform Fees

### Chadswap Fee Structure

***

Chadswap uses a clear and efficient fee model, distinguishing between makers and takers of orders.

#### **Makers:**

* **Protocol Fee:** Makers incur a protocol fee of **0.25%** applied to the total value of each order.
* **Blockchain Fee:** A fixed blockchain fee of **1 ₳ per transaction** to cover Cardano blockchain transaction costs.

{% hint style="info" %}
**Makers** are users who create buy or sell orders, learn how in our [tutorial](/how-to-use/create-order.md).
{% endhint %}

#### Takers:

* Takers benefit from **0% platform fees**. They are only responsible for covering any standard UTXO fees required by the Cardano blockchain, which are independent of Chadswap.

{% hint style="info" %}
**Takers** are users who accept existing orders. See our [tutorial](/how-to-use/accept-order.md) to get started.
{% endhint %}

### How Are Fees Utilized?

***

Fees collected through Chadswap are transparently allocated as follows:

**Operational Expenses:**

* Fees primarily cover ongoing operational expenses, including hosting services, server infrastructure, domain maintenance, and blockchain indexing, ensuring platform stability and accessibility.

***

**Allocation of Remaining Funds:**

* **60%** allocated to the team:
  * Distributed between the [Charles the Chad team](https://x.com/charles_thechad) (responsible for marketing and promotional activities) and the [ADA Anvil team](https://x.com/ada_anvil) (responsible for the platform’s development and ongoing maintenance).

***

* **40%** contributed to Liquidity Provision:
  * Allocated to building and maintaining the platform's liquidity pool treasury. ADA from fees is zapped into selected tokens LPs (currently planned exclusively for $CHAD) to enhance liquidity depth.

{% hint style="info" %}
**Zapping** refers to providing liquidity using just one asset, in this case, ADA. For example, zapping 1000 ADA means 500 ADA is automatically swapped for $CHAD, and paired with the remaining 500 ADA to supply liquidity.
{% endhint %}


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