Fee mechanism
Launches choose a permanent 1–4% trading fee in 0.25% steps, and allocate 70% of fees to the project and 30% to the protocol.
Which tokens fees are paid in
Each swap pays its launch-pool fee in the asset entering that pool:
| Trade | Fee asset |
|---|---|
| Buy a Lot-paired launch | Paired Lot token |
| Sell a launch token | Launch token being sold |
| Buy a direct-stock launch | Paired Stock Token |
The locker splits each token balance separately. Recipients claim those same tokens, without conversion into ETH, dollars or $LOTS. Collections can contain one or both pool assets; their mix follows trading activity.
A 2% buy fee on 100 Lot tokens is 2 Lot tokens. A 2% sell fee on 1,000 launch tokens is 20 launch tokens. These are different balances before recipient splits, impact and other costs.
ETH funding or output does not change the launch-pool fee asset. Gas, component-market fees and price impact are separate.
Where fees go
| Allocation | Use |
|---|---|
| 70% project share | Claimable project earnings, less any optional commitment to its launch-token buybacks |
| 30% protocol share | Separate balances in each collected asset |
| All Lot tokens within the protocol share | Reserved for $LOTS holder rewards |
| Any ETH separately available within the protocol allocation | Buy and burn $LOTS |
The last two rows describe uses inside the protocol share, not additional fees. Launch-token receipts remain launch tokens; obtaining ETH requires a separate source or conversion. There is no separate Lot-creator share.
Lot backing, wallet balances and locked launch principal are outside these allocations. Protocol buybacks and holder distributions are upcoming.
A worked example
On an illustrative $1,000 ordinary fee base at 2%, $20 in fee reference value splits into $14 for the project and $6 for the protocol, before rounding and other costs. Accounting stays in the received currencies; $6 in reference value does not mean $6 of ETH.
If collections credit the protocol with 30 launch tokens and 12 Lot A tokens, the 12 Lot A enter the reward reserve. The 30 launch tokens stay separate. A later conversion would have its own output and costs. This illustrates accounting, not an individual reward rate.
Permanent trading fees
The chosen rate applies from its first trade to buys, sells and the creator's opening purchase. It never decays and has no opening surcharge. The quote includes this rate and applicable fees on other route legs.
Lots charges no extra protocol launch-creation or Lot mint/redemption fee. Gas and required funding still apply; transfers are untaxed.
Opening purchases
A creator can include a paid, unvested purchase in the launch transaction, receiving at most 20 million tokens: 2% of original issuance. It pays the pool's fixed fee and counts toward the recipient's early limits.
First-two-minute limits
For 120 seconds after launch, each authenticated final recipient has both:
- A 2% cumulative-purchase limit.
- A 2% post-buy balance limit.
Each is 20 million tokens, measured against the original billion. Selling, transferring out or burning does not reset cumulative purchases. Incoming transfers can exceed the balance cap, but further protected buys then fail. Burns do not change the denominator.
The limits expire once, without restarting. Project buybacks respect them; they do not prevent coordinated buying across wallets.
Rotation and other costs
Rotation pays the source sale fee in the source token and the destination buy fee in the shared quote. Fee-only drag is 1 − (1 − f1) × (1 − f2), before impact, gas and rounding. See rotation examples.
Continue with project earnings, network rewards or buybacks.