# Fee Collection adopts a **carry fee model** by design for `TRADE` pools, where the protocol takes a percentage of the trading fee. Unlike a flat fee model, carry fee model presents a fairer and more sustainable distribution across the traders, liquidity provider and the protocol. However, as a carry fee model assumes an ongoing concern (a valid assumption for `TRADE` pools which will continue to trade within a band), it may not be as valid for LIMIT-type pools which can only trade a limited number of times (`TOKEN` or `NFT` pools). For those types of pools, for simplicity of understanding, we maintain a flat fee. The protocol fee for both types of pools will be 0% at launch, and governance 👀 can decide the percentage in the future. **Royalty** Collection seeks to provide a platform that helps to balance royalty asks from traders and creators. It is therefore **recommended by default** when liquidity provider is creating the pool. While creating an incentive program for the vault, NFT Project Owners / vault creators have the option only to incentivize pools that honor royalties. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.collection.xyz/guides/collection-concepts/fee.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.