# Fee Structure

The UPONLY fee structure is designed to reward long-term holders, strengthen liquidity, and drive the price up with every single transaction.

When users buy or sell UP tokens, they pay transaction fees that vary based on the selected **lock-up period** (or Pro Perpetual access). The longer a user chooses to commit, the **higher the potential gains** — and the **higher the transaction fees**, which fuel the protocol.

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## 🔁 How Fees Work

Each buy or sell transaction is subject to a **Buy Fee** and a **Sell Fee**, depending on the duration selected. These fees are distributed as follows:

* A portion is allocated to:
  * **Platform Share**
  * **Referral Rewards**
  * **Founder Pool**
* The **remaining majority** is retained by the **Uponly USDC Liquidity Pool**, which is what powers UP's upward price movement.

Because more USDC is added to the pool (relative to the number of UP tokens minted or burned), the price **always goes up** — whether you buy or sell.

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### ⏱ Duration-Based Fee Tiers

Below you can see the total fees charged for a **full transaction cycle which means buying and selling.** 

<table><thead><tr><th width="122.9453125">Locking Period</th><th width="116.328125">Flat Setup Fee</th><th width="88.328125">Total Fee</th><th width="419.30859375">Fee Breakdown (Buy + Sell)</th></tr></thead><tbody><tr><td><strong>1 Hour</strong></td><td>None</td><td><strong>5%</strong></td><td>3% Liquidity + 0.75% Platform + 0.75% Referral + 0.5% Founder Pool</td></tr><tr><td><strong>2 Hours</strong></td><td>None</td><td><strong>7%</strong></td><td>4.5% Liquidity + 1% Platform + 1% Referral + 0.5% Founder Pool</td></tr><tr><td><strong>3 Hours</strong></td><td>None</td><td><strong>9%</strong></td><td>6% Liquidity + 1.25% Platform + 1.25% Referral + 0.5% Founder Pool</td></tr><tr><td><strong>4 Hours</strong></td><td>None</td><td><strong>11%</strong></td><td>7.5% Liquidity + 1.5% Platform + 1.5% Referral + 0.5% Founder Pool</td></tr><tr><td><strong>6 Hours</strong></td><td>None</td><td><strong>13%</strong></td><td>9% Liquidity + 1.75% Platform + 1.75% Referral + 0.5% Founder Pool</td></tr><tr><td><strong>8 Hours</strong></td><td>None</td><td><strong>15.5%</strong></td><td>11% Liquidity + 2% Platform + 2% Referral + 0.5% Founder Pool</td></tr><tr><td><strong>12 Hours</strong></td><td>None</td><td><strong>20%</strong></td><td>15% Liquidity + 2.25% Platform + 2.25% Referral + 0.5% Founder Pool</td></tr><tr><td><strong>Pro Perpetuals</strong></td><td>None</td><td><strong>20%</strong></td><td>15% Liquidity + 2.25% Platform + 2.25% Referral + 0.5% Founder Pool</td></tr></tbody></table>

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### 💥 Why This Matters

* **Higher durations = higher gains for users = higher fees = higher protocol gains**
* Fee redistribution grows the **USDC Liquidity Pool**, which powers UP's price
* Because **fees are collected on both buys and sells**, the price increases in **both directions**

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### 🧠 Key Takeaways

* **Short-term traders** enjoy lower fees and flexible exits
* **Long-term holders** pay more but benefit from larger price appreciation
* **Perpetual traders** pay the highest fee (including a one-time setup fee) — but gain unlimited flexibility to hold and sell whenever they want

Every fee paid strengthens the system — creating **a sustainable, self-reinforcing loop** that rewards participation and drives the UP token’s price forward.

Want a breakdown of where every fee goes or a visual fee comparison? I can add that next.


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