3.4 Four-Tier Fee Structure

Path Protocol implements a fair value distribution system that rewards all stakeholders:

Total Trading Fee: 0.4% per trade

┌──────────────────────────────────────────────────┐
                 Fee Distribution                  
└──────────────────────────────────────────────────┘

Protocol Fee:    0.1% → Treasury
   │
   ├─> Development and operations
   ├─> Security audits
   ├─> Infrastructure costs
   └─> Ecosystem growth

Creator Fee:     0.1% → Market Creator (perpetual)
   │
   ├─> Incentivize quality market creation
   ├─> No time limit (earn forever)
   └─> Passive income for creators

Staker Fee:      0.1% → PATH Stakers (claimable)
   │
   ├─> Distributed proportionally to stake
   ├─> Incentivize long-term holding
   └─> Align governance with value

Platform Fee:    0.1% → Platform (perpetual)
   │
   ├─> Platform that created the market
   ├─> Incentivize platform development
   └─> Revenue share model

Fee Calculation Example:

User trades $10,000 in a market:

Trade Amount:     $10,000

Protocol Fee:     $10,000 × 0.001 = $10.00
Creator Fee:      $10,000 × 0.001 = $10.00
Staker Fee:       $10,000 × 0.001 = $10.00
Platform Fee:     $10,000 × 0.001 = $10.00
────────────────────────────────────────
Total Fees:       $40.00 (0.4%)

Net to User:      $9,960 worth of shares

Annual Revenue Projection:

Assuming $1B annual trading volume:

Total Fees (0.4%):          $4,000,000

Distribution:
├─> Protocol Treasury:      $1,000,000
├─> Market Creators:        $1,000,000
├─> PATH Stakers:           $1,000,000
└─> Platforms:              $1,000,000

This aligned incentive structure ensures:

• Protocol has resources for development

• Creators are rewarded for popular markets

• Stakers earn from ecosystem growth

• Platforms have business model for integration