Fees

Associated Protocol Fees II Creating A Sustainable Ecosystem.

Providence implements a fee structure to ensure the sustainable operation and incentivisation of various participants within the ecosystem. The following fees are applied to different mechanisms and vaults within the Providence platform:

Swap Mechanism Fees

For all trades executed through the swap mechanism, a 0.3% fee is applied. This fee is distributed as follows:

• 70% - Allocated to LPs as an incentive for providing liquidity.

• 30% - Directed to the Providence treasury to support the ongoing development and maintenance of the protocol.

Burn/Mint Mechanism Fees

Trades executed through the burn/mint mechanism are also subject to a 0.3% fee, distributed as follows:

• 67.5% - Redistributed to participants in the Standard Vault, providing them with a return on their locked PROV tokens.

• 17.5% - Allocated to participants in the Loyalty Vault, offering additional incentives.

• 15% - Directed to the Providence treasury to ensure the financial stability and growth of the protocol.

Vault Deposit Fees

To encourage participation in both the Standard and Loyalty Vaults, Providence does not impose any fees on deposits:

• Standard Vault Fee: 0.0% fee on deposits.

• Loyalty Vault Fee: 0.0% fee on deposits.

Our deployed fee structure is designed to balance the incentives for liquidity provision, user participation, and the financial sustainability of Providence. The allocation of fees ensures that liquidity providers and vault participants are adequately rewarded, while the treasury receives a portion to fund future development and operational costs. Fees can be amended over time in accordance with governance procedures.