# Trading Fees and Others

Canonical page: https://docs.denaria.finance/protocol-architecture/trading-fees

Status: current

### Trading Fees

By default, Denaria applies two types of fees when trading:

- **Trade fee** → A fixed percentage fee of 0.1% is charged on the notional value of every trade, both when opening and closing positions. This fee is collected in the quote asset (vStable).
- **Flat fee** → A separate fee is applied to cover gas sponsorship costs. This fee ensures the protocol remains economically sustainable by offsetting blockchain interaction expenses. As of today, this fee is $0.12.

### Trading Fee Breakdown and Distribution

The protocol uses a flexible mechanism to define how fees are allocated. A configurable percentage `ϕ` of each fee is assigned to the **protocol** and **Insurance fund,** while the remaining `(1 - ϕ)` is distributed to **liquidity providers.**

As today, the ratio for the distribution of the fees is the following:

- **50%** to Liquidity Providers
- **30%** to Frontend Providers
- **20%** to Insurance Fund. When cap, to Protocol

![](https://docs.denaria.finance/img/protocol%20Architecture/09_tradingFees.png)

### Other Fees

- **Funding fee** → A funding fee is paid or received based on market conditions. Please explore this topic in the dedicated section [Funding Rate](/protocol-architecture/funding-rate)
- **Withdraw stable** → Sending stablecoins out of the PWA incurs a flat fee of $0.12. This fee is used to cover blockchain transaction costs and prevent spam attacks.
- **Add/Remove collateral** → Adding or removing collateral in a trade position incurs a flat fee of $0.12. This fee is used to cover blockchain transaction costs and prevent spam attacks.