# 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.