Fees
There are two types of fees in STP:
- Protocol Fees
- Client Fees
Protocol Fees
Protocol fees are collected by the protocol and are used to incentivize the development of the protocol. These fees are collected as a percentage of the tokens received by the contract. The fee rate is 100 basis points (1%).
Client Fees
Client fees are set by the client when deploying a subscription. Each client can set their own fee rate, which is collected by the protocol and sent to the recipient. It's up to developers to decide what they want to charge for their services. The protocol enforces a max rake of 12.5%, so the maximum a client could set is 11.5% (11.5% + 1% = 12.5%).
Additionally, the client can allocate a portion of the client fee to referrers when no referral code is presented during mint time. Learn More
When are fees set?
When a subscription is created, the fee is calculated and stored in the contract. Once set, these rates cannot change. However, the recipient for both protocol and client fees can be updated by the respective accounts.
How are fees collected?
Fees are transferred upon contract inflows, specifically minting.