> For the complete documentation index, see [llms.txt](https://docs.artinals.com/artinals-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.artinals.com/artinals-protocol/trade-module/functions-and-entry-points/fee-mechanics-and-distribution.md).

# Fee Mechanics and Distribution

**Mechanics**:

* Each trade within a pool incurs a fee, defined by `fee_percent`.
* Fees accumulate in `accumulated_fees` and `contract_owner_accumulated_fees` balances.

**`withdraw_currency<CURRENCY>(...)` (in the SALE module) and analogous fee collection functions in TRADE**:

* The pool owner or designated authority can distribute accumulated fees to recipients.
* LP token holders indirectly benefit from these fees as they increase the value of the pool’s assets over time.

**Use Cases**:

* Incentivize liquidity provision by sharing fee income with LPs.
* Reward the pool creator or contract owner for maintaining a healthy market.

**Best Practices**:

* Set fees at a level that attracts liquidity without discouraging trading.
* Regularly collect and distribute fees to maintain trust and financial clarity.


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