# 💱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.

![](https://3431135529-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MYhYcw9WN6xTQqOD_-A%2F-MafV9OgFhvA3nidCr2k%2F-MafVrYR4jxrGsSY8jmd%2Fimage.png?alt=media\&token=77ef383a-18dc-4fe2-b66f-688e32a1dad6)