> For the complete documentation index, see [llms.txt](https://docs.wowswap.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wowswap.io/about/fees.md).

# 💱Fees

The protocol charges a percentage of net profit made by traders, calculated in BNB. The fee is decided by WOWswap Governance.

Let suppose that a net profit fee is 5%, and a trader buys a token for 10 BNB with 5 X leverage (50 BNB in total). If the token’s price increases by 20%, then the trader’s gross profit is 1.2*50 \* 50 – 40 BNB (borrowed) = 20 BNB. Suppose, the cost of capital was 0.5 BNB, so the net profit will be 19.5 BNB. The protocol fees will be 0.05*19.5 = 0.975 BNB.

50% of this amount will go to the insurance fund (0.4875 BNB), and another 50% will be spent to buy and burn WOW tokens.

![](/files/-MafVrYR4jxrGsSY8jmd)


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