> For the complete documentation index, see [llms.txt](https://rwapact.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://rwapact.gitbook.io/whitepaper/protocol-economics/protocol-fees.md).

# Protocol Fees

## Protocol Fees

RWAPACT's current specification defines a `0.3%` protocol fee on validated trade volume.

The fee is associated with trading activity that passes through the Pact validation layer. RWAPACT first evaluates a trade request. It does not charge for acting as the DEX or trading venue.

### From intent to validated volume

An agent submits a trade intent to RWAPACT. The Pact evaluates the request before execution can be authorized.

* KRO evaluates RWA risk.
* KSO validates the session.
* KPV checks the active policy.
* KGR evaluates execution conditions.
* KAR records the resulting decision.

The protocol fee relates to validated trading activity passing through this middleware. The specification does not state that every attempted or rejected trade necessarily produces the `0.3%` fee.

```
Agent Trade Intent
  -> Pact Validation
  -> Authorized Trade
  -> Validated Trade Volume
  -> Protocol Fee
```

### Fee Is Not the Execution Layer

RWAPACT does not charge a fee because it is the execution venue. It sits between agent intent and execution as decision and risk middleware.

The fee reflects use of the validation and decision infrastructure. That infrastructure includes risk evaluation, session validation, policy enforcement, gas routing, and attestation recording.

The specification does not define cost-allocation percentages across those functions. This page does not infer any allocation from the stated fee rate.

### Mathematical example

If a validated trade has a notional value of `$1,000`, a `0.3%` fee equals `$3.00`.

This is a mathematical example, not a production fee transaction.

### Fee Calculation Example

| Validated trade volume | Fee rate | Protocol fee |
| ---------------------- | -------- | ------------ |
| `$500`                 | `0.3%`   | `$1.50`      |
| `$1,000`               | `0.3%`   | `$3.00`      |
| `$10,000`              | `0.3%`   | `$30.00`     |

These calculations illustrate the current stated rate. They do not describe realized fees or future fee outcomes.

The protocol fee scales with validated activity. The model does not require a fixed subscription for every agent.

***


---

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