> ## Documentation Index
> Fetch the complete documentation index at: https://docs.lfg.rich/llms.txt
> Use this file to discover all available pages before exploring further.

# Fee Structure

> V5 creation, trading, referral, borrowing, treasury, and legacy fee notes.

LFG.RICH V5 fees are handled automatically by the protocol contracts.

<CardGroup cols={2}>
  <Card title="Creation fee" icon="rocket">
    Token creation uses the Factory's current creation fee plus optional `devBuyEth` for the creator's initial buy.
  </Card>

  <Card title="Trading fee" icon="arrow-right-arrow-left">
    Buy and sell trades use a fixed 1.25% total fee in V5.
  </Card>

  <Card title="Referral split" icon="people-arrows">
    The 1.00% trading reward goes to the user's initial inviter when referral state is valid.
  </Card>

  <Card title="Borrow fee" icon="landmark">
    Borrowing has a one-time 3.00% fee, with the 2.00% reward routed to the direct parent when available.
  </Card>
</CardGroup>

<Warning>
  Older documentation that described creator-selected 1% to 10% trading fees belongs to the legacy V3 flow. V5 uses fixed protocol fee constants.
</Warning>

## Token creation fee

Token creation uses the Factory's current creation fee:

```solidity theme={null}
function creationFee() view returns (uint256);
```

The V5 creation function also accepts `devBuyEth`, which is the optional initial buy amount by the creator:

```solidity theme={null}
function createToken(
    string name,
    string symbol,
    uint256 devBuyEth
) payable returns (address token, bytes32 poolId);
```

`msg.value` must cover:

```txt theme={null}
creationFee + devBuyEth
```

Any extra value is expected to be refunded by the contract flow.

## Trading fees

V5 buy and sell trades use a fixed total trade fee:

| Fee component   |  Rate | Recipient                                         |
| --------------- | ----: | ------------------------------------------------- |
| Total trade fee | 1.25% | Split by referral state                           |
| Platform fee    | 0.25% | Platform / Factory side                           |
| Inviter fee     | 1.00% | User's initial inviter, or platform if no inviter |

The Hook exposes the constants:

```solidity theme={null}
function TOTAL_FEE_BPS() view returns (uint256);       // 125
function PLATFORM_FEE_BPS() view returns (uint256);    // 25
function INVITER_FEE_BPS() view returns (uint256);     // 100
function BPS_DENOMINATOR() view returns (uint256);     // 10000
```

Example buy:

```txt theme={null}
User sends:        1.0000 BNB
Total fee:         0.0125 BNB
Platform portion:  0.0025 BNB
Inviter portion:   0.0100 BNB
Net to curve:      0.9875 BNB
```

If the trader is not bound to a referral tree, the inviter portion goes to the platform side instead of a user inviter.

## Borrowing fees

Borrowing has a fixed one-time 3% fee:

| Fee component       |  Rate | Recipient                                      |
| ------------------- | ----: | ---------------------------------------------- |
| Total borrow fee    | 3.00% | Split by referral state                        |
| Borrow platform fee | 1.00% | Platform / Factory side                        |
| Borrow parent fee   | 2.00% | User's direct parent, or platform if no parent |

Hook constants:

```solidity theme={null}
function BORROW_FEE_BPS() view returns (uint256);           // 300
function BORROW_PLATFORM_FEE_BPS() view returns (uint256);  // 100
function BORROW_PARENT_FEE_BPS() view returns (uint256);    // 200
```

Important distinction:

* trading rewards go to the user's **initial inviter**;
* borrow rewards go to the user's **direct parent**.

## Legacy V3 fee model

Legacy V3 examples may include token-level creator-selected trading fees and a floor boost portion. Do not use that model for new V5 docs or V5 examples unless the page is explicitly documenting legacy V3.