# Fees

CoolDEX implements a sophisticated fee structure that varies based on token type and configuration. This page details the different fee structures and their distribution mechanisms.

## Token Types and Fee Structures

### 1. Zero Fee Tokens

Tokens that have migrated from SC Bonding Curve with a zero fee setting (after\_migration\_fee = 0):

* **Swap Fee**: 0%
* **No fee distribution**: No fees are collected or distributed

### 2. Community Contribution Tokens

Tokens that have migrated from SC Bonding Curve with a positive fee setting:

* **Swap Fee Options**: 0.25%, 0.5%, 1%, 2%, or 5% (specified during token creation)
* **Fee Distribution**:
  * **Platform**: 10% of collected fees go to the platform
  * **Remaining 90%** is distributed according to the token creator's specifications:
    * **Burn**: Specified percentage of tokens are burned (reduces supply)
    * **Holders**: Specified percentage allocated to token holders
    * **LP Providers**: Specified percentage allocated to liquidity providers

## Fee Collection and Distribution

### Fee Collection

Fees are collected during swap operations:

1. **Swap Base In**: Fees are deducted from the input amount
2. **Swap Base Out**: Fees are added to the calculated input amount

### Fee Distribution Mechanisms

#### Immediate Distribution

Some fees are distributed immediately during the swap transaction:

* **Burns**: For tokens with a burn component, the specified percentage of tokens is burned directly during the swap
* **Platform Fees**: Platform fees are transferred to the platform fee account during the swap

#### Accumulated Distribution

Other fees accumulate and can be claimed by eligible recipients:

* **Holder Rewards**: Accumulated for token holders who can claim them
* **LP Rewards**: Accumulated for liquidity providers who can claim them

### Direction-Specific Fee Logic

#### Selling Tokens (Coin2PC)

When selling tokens for SOL:

1. A portion of the input tokens is deducted as fee
2. Of this fee:
   * A percentage is burned (if applicable)
   * A percentage is sent to CULT contribution account
   * The remaining tokens are added to the pool
3. From the output SOL:
   * A percentage is sent to platform tax account
   * A percentage is sent to CULT contribution account
   * The remaining SOL is sent to the user

#### Buying Tokens (PC2Coin)

When buying tokens with SOL:

1. A portion of the input SOL is deducted as fee
2. Of this fee:
   * A percentage is sent to platform tax account
   * A percentage is sent to CULT contribution account
   * The remaining SOL is added to the pool
3. From the output tokens:
   * A percentage is burned (if applicable)
   * A percentage is sent to CULT contribution account
   * The remaining tokens are sent to the user

## Fee Parameters

The key fee parameters in the system include:

* **swap\_fee\_numerator** and **swap\_fee\_denominator**: Determine the overall swap fee percentage
* **cooldex\_team\_fee\_wsol\_fee\_numerator** and **cooldex\_team\_fee\_wsol\_fee\_denominator**: Determine the platform's portion of the fee
* **burn\_rate**: Determines what percentage of the token fee is burned
* **SC BONDING CURVE\_BURN\_RATE\_DENOMINATOR**: Fixed at 10000, used to calculate percentages

## Example Fee Calculation

For a 5% fee token with 50% burn, 30% holders, 20% LP distribution, assuming a 1000 TOKEN swap:

```
swap_fee = 1000 * 0.05 = 50 TOKEN
platform_fee = 50 * 0.1 = 5 TOKEN
remaining_fee = 50 - 5 = 45 TOKEN

burn_amount = 45 * 0.5 = 22.5 TOKEN
holders_amount = 45 * 0.3 = 13.5 TOKEN
lp_amount = 45 * 0.2 = 9 TOKEN
```

In this example:

* 22.5 TOKEN would be burned
* 13.5 TOKEN would accumulate for holder rewards
* 9 TOKEN would accumulate for LP rewards
* 5 TOKEN would go to the platform


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