> For the complete documentation index, see [llms.txt](https://sugar-yield.gitbook.io/sugaryield/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://sugar-yield.gitbook.io/sugaryield/learn-more/sugar-token/trading-fees-explained.md).

# Trading Fees Explained

<mark style="color:green;">**Buy Trading Fees:**</mark>

0.4% - LP\
0.4% - Treasury\
0.2% - Bounty Reward/Hackathons

Total 1% fee on buying

<mark style="color:green;">**Sell Trading Fees:**</mark>&#x20;

0.8% - LP\
0.8% - Treasury\
0.4% - Bounty Reward/Hackathons

Total 2% fee on selling

<mark style="color:green;">**Placement:**</mark>&#x20;

* **LP -** Trading fees goes to backing the liquidity of the BNB/Sugar pair on PancakeSwap ensuring an ever-increasing collateral value of $Sugar. &#x20;
* **Treasury -** Trading fees go directly to the treasury which supports the SIF (Sugar Investment Funds) and provides a marketing budget for Sugar and funds new product development.
* **Bounty Reward/Hackathons-** In order to improve hedge/speculation protocol we will arrange multiple hackathons and offer prizes.