> For the complete documentation index, see [llms.txt](https://docs.watt.si/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.watt.si/the-protocol/fee-structure.md).

# Fee structure

Each Watt liquid-staked token carries a **specific fee configuration** at the token level. This fee structure maintains the volatility farming flywheel. Initial token wrappers and liquidity providers determine the optimal fee structure. The table below outlines the fees associated with each applicable action.

| Fee             | Allowed range | Note                                                                          |
| --------------- | ------------- | ----------------------------------------------------------------------------- |
| Wrap fee        | 0 - 10%       | The sum of wrap and unwrap fee must be greater than 0.8%                      |
| Unwrap fee      | 0.4 - 10%     | The sum of wrap and unwrap fee must be greater than 0.8%                      |
| Burn rate       | 10 - 50%      | See explanation in [Burn rate](/the-protocol/fee-structure/burn-rate.md)      |
| Buy or sell fee | 0.55 - 4%     | Recognized as a transfer fee, applies on any swap or transfer between wallets |

It is generally advisable to set higher fees for more volatile assets, such as meme or AI tokens, while adopting a more conservative approach for less volatile assets like utility or governance tokens.

A small protocol fee is collected following each fee deduction to support the sustainable growth and expansion of the protocol.

Once established, the fee structure cannot be altered from the app interface.