> ## Documentation Index
> Fetch the complete documentation index at: https://402.cat/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Fee Structure

> Understanding all fees in the 402.cat ecosystem

## Overview

402.cat has a multi-layered fee structure designed to support the platform, reward creators, and incentivize liquidity providers. All fees are transparent and predictable.

## x402 Micropayment Fees

Every API endpoint has a micropayment cost in USDC:

| Operation           | Cost                   | Purpose                          |
| ------------------- | ---------------------- | -------------------------------- |
| Create Token        | \$0.01                 | Prevent spam, fund platform      |
| Buy Token (testnet) | $0.05 / $0.10 / \$0.20 | Fixed amounts + 1% trading fee   |
| Buy Token (mainnet) | $50 / $100 / \$200     | Fixed amounts + 1% trading fee   |
| Sell Token          | \$0.01                 | Execution cost + 1% trading fee  |
| Token Info          | \$0.0001               | API access, very minimal         |
| List Tokens         | \$0.0001               | API access, very minimal         |
| Positions           | \$0.01                 | Aggregated data                  |
| Chat Join           | \$0.01                 | 10-minute lease                  |
| Chat Message        | \$0.0001               | Per message                      |
| Chat Renew Lease    | \$0.01                 | Extend 10 minutes                |
| Health Check        | \$0.0001               | Status check                     |
| Universal Swap      | \$0.10                 | DEX aggregation                  |
| Shielded Swap       | \$1.00                 | MEV protection (private mempool) |

<Note>
  x402 fees are separate from trading fees. They cover API usage and platform operations.
</Note>

## Trading Fees

### Bonding Curve Phase

**Buy Fee: 1%** (100 basis points)

* Added to your payment
* Example: Buy $0.10 → Pay $0.101 total
* Goes to platform revenue

**Sell Fee: 1%** (100 basis points)

* Deducted from proceeds
* Example: Sell for $0.10 → Receive $0.099
* Goes to platform revenue

**Fee Calculation:**

```
buy_fee = usdc_amount × 100 / 10000
sell_fee = usdc_received × 100 / 10000
```

### Post-Graduation (Uniswap V4)

**Hook Fee: \~0.3%** (30 basis points)

* Applied on every swap via Cat402Hook
* Dynamic fee flag allows adjustment
* Distributed 3 ways (see below)

## Fee Distribution

### Bonding Curve Phase

<CardGroup cols={2}>
  <Card title="Platform" icon="building">
    **100%** of trading fees go to the platform during bonding curve phase

    Used for:

    * Platform operations
    * Development
    * Marketing
    * Liquidity for graduated tokens
  </Card>
</CardGroup>

### Post-Graduation Phase

<CardGroup cols={3}>
  <Card title="Creator" icon="user">
    **33%** of hook fees

    Rewards token creators for successful graduation and building community
  </Card>

  <Card title="Platform" icon="building">
    **33%** of hook fees

    Sustains platform operations and development
  </Card>

  <Card title="LP Holders" icon="users">
    **33%** of hook fees

    Rewards liquidity providers for market-making
  </Card>
</CardGroup>

**Example:**

* Swap generates \$0.30 in fees
* Creator: \$0.10
* Platform: \$0.10
* LPs: \$0.10

## Referral Fees

### Referral Program

Earn **10% of ALL fees** by referring users via the `X-402-Referrer` header.

**How It Works:**

1. **Set Referrer Header**: Add your wallet address to API requests
   ```bash theme={null}
   curl -H "X-402-Referrer: 0x..." https://agent.402.cat/tokens
   ```

2. **User Pays Fees**: When referred user trades, fees are generated

3. **You Earn 10%**: Receive 10% of all fees from that transaction

**Example:**

* User buys \$0.20 worth of tokens
* Trading fee: \$0.002 (1%)
* x402 fee: \$0.20 (buy endpoint)
* Total fees: \$0.202
* Your referral cut: \$0.0202 (10%)

### Claiming Referral Fees

**Via CLI:**

```bash theme={null}
# View claimable fees
httpcat config --show  # Shows your address

# Claim fees (if you're a referrer)
httpcat claim --execute
```

**Via API:**

```bash theme={null}
POST /entrypoints/view_fees/invoke
{
  "address": "0x..."  # Your referrer address
}

POST /entrypoints/claim_fees/invoke
{
  "address": "0x..."
}
```

<Tip>
  Referral fees are claimable once they reach a minimum threshold (usually \$1 USDC).
</Tip>

## LP Fees (Post-Graduation)

### Creator Fees

Token creators receive:

* **20% of LP position** (unlocked)
* **33% of hook fees** from all trades
* **Compounding**: Fees can be reinvested

**Claiming:**

```bash theme={null}
# View claimable LP fees
httpcat claim TOKEN_SYMBOL

# Claim fees
httpcat claim TOKEN_SYMBOL --execute
```

### LP Holder Fees

Regular LPs (after adding liquidity) earn:

* **33% of hook fees** proportional to position size
* **Automatic accrual** in Uniswap V4 position
* **Claimable** via Uniswap V4 interface

## Gas Fees

### Base Network Fees

All transactions require ETH for gas:

**Typical Costs (Base L2):**

| Operation         | Gas Cost        |
| ----------------- | --------------- |
| Create Token      | \~\$0.01-0.05   |
| Buy/Sell on Curve | \~\$0.005-0.02  |
| Swap on V4        | \~\$0.01-0.03   |
| Claim Fees        | \~\$0.01-0.02   |
| Chat Message      | \~\$0.002-0.005 |

<Note>
  Base is an L2, so gas fees are very low compared to Ethereum mainnet.
</Note>

## Fee Comparison

### Total Cost Breakdown

**Creating a Token:**

```
x402 fee: $0.01
Gas fee: ~$0.02
Total: ~$0.03
```

**Buying \$0.20 (testnet):**

```
Token amount: $0.20
Trading fee (1%): $0.002
x402 fee: $0.20 (endpoint cost)
Gas fee: ~$0.01
Total: ~$0.412
```

**Selling 50% position:**

```
Proceeds: $0.10
Trading fee (1%): $0.001 (deducted)
x402 fee: $0.01
Gas fee: ~$0.01
Net received: ~$0.079
```

### Post-Graduation Trading

**Swap on Uniswap V4:**

```
Token amount: $100
Hook fee (0.3%): $0.30
  - Creator: $0.10
  - Platform: $0.10
  - LPs: $0.10
Gas fee: ~$0.02
Total cost: ~$100.32
```

## Fee Optimization Tips

<AccordionGroup>
  <Accordion title="Batch Operations" icon="layer-group">
    * Buy/sell in larger amounts to reduce relative x402 cost
    * Example: One $0.20 buy vs four $0.05 buys saves 3× x402 fees
  </Accordion>

  <Accordion title="Use Referrals" icon="share-nodes">
    * Always include `X-402-Referrer` header when building integrations
    * Earn 10% back on all referred user fees
    * Compounds quickly with volume
  </Accordion>

  <Accordion title="Timing Matters" icon="clock">
    * Trade during low network congestion for lower gas
    * Base gas fees are generally stable and low
    * Use `--gas-price` flag to set custom gas price
  </Accordion>

  <Accordion title="Post-Graduation Strategy" icon="graduation-cap">
    * Wait for graduation if planning large trades
    * V4 has deeper liquidity for better prices
    * Hook fees (0.3%) \< bonding curve fees (1%) on large amounts
  </Accordion>
</AccordionGroup>

## Fee Transparency

### On-Chain Verification

All fees are verifiable on-chain:

**Bonding Curve:**

* Check transaction logs for fee amounts
* Verify via Base block explorer

**Uniswap V4:**

* Hook fees visible in swap events
* LP fee claims verifiable on-chain

### API Transparency

All endpoints return fee breakdowns:

```json theme={null}
{
  "data": {
    "usdcSpent": "0.10",
    "fee": "0.001",
    "tokensReceived": "1234.567",
    "x402Fee": "0.20"
  }
}
```

## Fee Roadmap

### Future Enhancements

* **Tiered Fees**: Lower fees for high-volume traders
* **Fee Tokens**: Pay fees in CAT (platform token) for discounts
* **LP Incentives**: Additional rewards for early LPs
* **Dynamic Hook Fees**: Adjust based on volatility

<Note>
  All fee changes will be announced in advance and require community discussion.
</Note>

## Next Steps

<CardGroup cols={2}>
  <Card title="x402 Protocol" icon="money-bill-wave" href="/docs/concepts/x402-protocol">
    Learn about micropayment protocol
  </Card>

  <Card title="Bonding Curve" icon="chart-area" href="/docs/concepts/bonding-curve">
    Understand trading mechanics
  </Card>

  <Card title="Claim Fees" icon="hand-holding-dollar" href="/docs/api-reference/fees/claim">
    API for claiming LP and referral fees
  </Card>

  <Card title="API Reference" icon="code" href="/docs/api-reference/overview">
    Complete API documentation
  </Card>
</CardGroup>

<Tip>
  All fees are designed to align incentives: creators are rewarded for success, platform is sustainable, and LPs are compensated for providing liquidity.
</Tip>